There are not a lot of MPEG-2 video editing tools around. Your best bet is to download TMPGEnc from any of dozens of places. It's a good freebie MPEG editor and has MPEG-2 built in on a trial basis, but you need to pay for the MPEG-2 if you want to use it beyond 15 days (or maybe 30 days, whatever). Just load the MPEG-2 video file and run it through an MPEG template and voila, instant VCD. Or the file can be output to .avi or non-VCD MPEG if you want. The real issue is audio synch. 9 times out of 10 when converting MPEG-2 into some other format the audio will fall out of synch with the video. So you'll need to demux the MPEG, edit the audio to either stretch it or compress it so it synchs back up with the video, and remux to get a good file. That's not a shortcoming in TMPGEnc, it happens with all MPEG-2 editors AFAIK, so trying a different editor won't help.