i dont know why apple doesnt support mpeg2, but check this out
I'm using a Mini-Mac with 2GB of RAM and a 120GB HD. I connect the handycam to my Apple. iPhoto opens and I see all of the photos I've taken (jpg). But all of the MPEG files are blank. When I click on properties for one of the movie files it says it is a MPEG-1 (which is weird because the product specification says that it uses MPEG-2)...anyway
When I go into the MP Root directory on the handycam and open the movie folder (101PNV01) I see all of the movie files. They all have a little quicktime MPEG icon, but when I try and open them, it tells me that "The movie could not be opened, the file is not a movie file"!?
Any ideas what I'm doing wrong?