Just rename .MOD extension to .MPG and edit is with womble:
http://www.womble.com/products/Feature.htm
I recently bought a JVC Everio GZ-MC50 camcorder, which records in .MOD MPEG-2 files. JVC bundles some Cyberlink software with the camcorder, but the software if vastly inferior to a lot of other DV editing applications out there. I haven't been able to find a good video editing application that can edit MPEG-2, however.
I'm aware of the fact that the nature of MPEG-2 compression makes this very difficult. I'm still wondering, however, if anyone knows of any MPEG-2 video editing solutions.

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