I've never tried editing directly with MPEG2 sources, but for my very first video editing project several years ago I used MPEG1 sources (ripped directly from VCDs) and the output was horribly "stroby", as you put it. I solved the problem by converting them into AVI files, but obviously that means deterioration of picture quality. (A better alternative to file conversion would be frameserving using AVISynth, which brings us back to what Moth3r and I said in our earlier posts. I should heed my own advice and edit using frameserved video next time.)