ADM's guide does work, and why not just use the latest regular VirtualDub, it works just fine, and I have Windows 7 Pro 64, you must be doing something wrong or missing a step, I learned editing with his guide and I can confirm that it will work.

You need to install this

http://neuron2.net/dgmpgdec/dgmpgdec.html

and as Moth3r stated, you set to "force film", don't listen to Darth Mallcrawler, it does and will work just fine, this is how we all do it, this will give you your .d2v file and then you are good to go.