Converting mpg files to format for WMP + WLMM

[Baffled]

I converted old 8mm movies to video cassettes and then to DVDs. Windows did not like the DVDs and only gave the option to play the files and not to import them, which of course meant that I couldn't get the movies saved on the laptop.

So I downloaded VLC and recorded clips from the DVDs using the VLC record button. Now I want to convert those clips, which are in mpg format, into a format I can use for Windows Media Player and also Windows Live Movie Maker.

From the VLC Media menu, I tried converting the mpg clips into MP4 without success. I guess that's not the way to go. Any advice would be greatly appreciated.