proprem,

You don't provide much info to go on eg version of MEP and source of your mpg2 file. Some MAGIX versions require an extra plugin for mpg2. This apparently can't be included in the original distribution because of licensing restrictions. If this is your problem check under the main 'Help' menu for a download link which might have a small fee ($10 IIRC) but should be free in the plus and premium versions.

Regards,

Carl