One other thing I remember now is, after you go through the “motions” of draging the mpg with Explorer to Vegas “timeline” (not media pool”, then…….give it some time…..wait a minute for the cpu & Vegas to do something.
Do a search here about VOB files. You may copy the VOB files to your hard drive, then drag them on to the Vegas timeline. If your DVD has AC3 audio, then you have much more work ahead.