Mpeg@ Transport Stream with Mpeg1 layer II audio

[compufix]

I am using a VOD system that has the ability to stream content in other fasions than their format. I would like to use VLC to "tune" this stream in and then transcode it to something like MPEG4 that I can then relay using QTSS or such.

Here is the info from the vendor..

These would be raw UDP MPEG-2 transport streams that contain both audio and video. The audio is MPEG-1 layer II compliant audio in unaligned format (more efficient). Check to see whether vlc can process the MPEG compliant unaligned audio?

I can see the video just fine, but am getting no audio.

Also, can I run multiple VLC instances to transcode to different formats on one machine?

-Mike