Cannot edit MPEG-2 in Windows Photoshop CS6

Question

Just upgraded to Photoshop CS6 and am attempting (unsuccessfully) to edit some MGEG2 content. The video content has been extracted from Windows DVRMS files using DVRMStoMPEGGUI. I can work with H264 content in Photoshop without a problem.
All MGEP2 videos play fine with both Quicktime and Windows Media Player.
Here  is what happens when I try to edit the file in Photoshop
File is read by photoshop and all looks fine. First frame is shown as expected.  (see screenshot below)
If I try to play the video in photoshop, the elapsed time counters at the bottom give the impression that all is well, but the video does not play.
Attempting to trim the video does update the overall timings of the video, but the first frame is still displayed.
Rendering the video as H264 appears to work - the export dialog appears and a file does get created. THe H264 file export is playable, but consists of the first frame  displayed continually for the duration of the video..
I've checked through other discussions regarding editing MPEG-2 video content in Photoshop and another thread suggested checking that the video content is playable via Bridge. Like with Photoshop, Bridge displays the first frame of the MPEG2 in the thumbnail, but attempting to play it locks up Bridge completely.  Doing a "Reset Settings" with Bridge made no difference.
Any suggestions about how to troubleshoot this further?
Here is my setup
Adobe Photoshop Version: 13.0.1 (13.0.1 20120808.r.519 2012/08/08:21:00:00) x64
Operating System: Windows 7 64-bit
Version: 6.1 Service Pack 1
System architecture: Intel CPU Family:6, Model:10, Stepping:4 with MMX, SSE Integer, SSE FP, SSE2, SSE3, SSE4.1, SSE4.2, HyperThreading
Physical processor count: 4
Logical processor count: 8
Processor speed: 2660 MHz
Built-in memory: 24567 MB
Quicktime 7.72.80.56 + Quicktime MPEG2 7.60.92.0
Bridge 5.0.1.21 (x32)

Answer 1

Thanks for the quick response guys - I appreciate you taking the time to respond.
Whilst I understand that there are complexities in dealing with MPEG2 content, and using another media format is certainly an option to work around my issue, MPEG2 is listed as a supported file format.
To dig deeper intop the issue, I thought I'd see if I could read any MPEG2 content at all. I've tried downloading a random sample of MPEG2 content from the net - those that Photoshop read exhibited the same issue. That means that I'm either very unlucky with the MPEG2 samples I've picked, or there is a problem with my setup. 
Do you happen to know of some MPEG2 content on the net that will work with Photoshop CS6? If I try that and it doesn't work for me, it means there is an issue with my setup. If it does work, the problem lies with the files I'm trying to edit.
Bill - you suggested I post thew output from MediaInfo. I've included it below
General
CompleteName                     : C:\Users\Public\Recorded TV\As You Like It.MPG
Format                           : MPEG-PS
FileSize/String                  : 2.46 GiB
Duration/String                  : 1h 59mn
OverallBitRate_Mode/String       : Variable
OverallBitRate/String            : 2 948 Kbps
Video
ID/String                        : 224 (0xE0)
Format                           : MPEG Video
Format_Version                   : Version 2
Format_Profile                   : Main@Main
Format_Settings_BVOP/String      : Yes
Format_Settings_Matrix/String    : Custom
Format_Settings_GOP              : M=3, N=24
Duration/String                  : 1h 59mn
BitRate_Mode/String              : Variable
BitRate/String                   : 2 633 Kbps
BitRate_Maximum/String           : 15.0 Mbps
Width/String                     : 720 pixels
Height/String                    : 576 pixels
DisplayAspectRatio/String        : 16:9
ActiveFormatDescription/String   : Letterbox 16:9 image
FrameRate/String                 : 25.000 fps
Standard                         : PAL
ColorSpace                       : YUV
ChromaSubsampling                : 4:2:0
BitDepth/String                  : 8 bits
ScanType/String                  : Interlaced
ScanOrder/String                 : Top Field First
Compression_Mode/String          : Lossy
Bits-(Pixel*Frame)               : 0.254
StreamSize/String                : 2.20 GiB (89%)
Audio
ID/String                        : 192 (0xC0)
Format                           : MPEG Audio
Format_Version                   : Version 1
Format_Profile                   : Layer 2
Duration/String                  : 1h 59mn
BitRate_Mode/String              : Constant
BitRate/String                   : 256 Kbps
Channel(s)/String                : 2 channels
SamplingRate/String              : 48.0 KHz
Compression_Mode/String          : Lossy
Video_Delay/String               : -14ms
StreamSize/String                : 219 MiB (9%)