Converting MPEG1 to DV or MPEG4

I have a SONY handycam that is not MAC compatible (of course... ha ha). So, I am uploading all of the video onto my PC and then transfering it to my MAC. BUT...all of the video is coming into my MAC as MPEG1. How can I convert this to a filetype (MPEG4, DV...) that will work with iMovie?
I just downloaded MPEG streamclip, but I think I am totally confused with it. It is telling me that I need to download something else in order to have it convert from MPEG2. But I thought my files were MPEG1's. Any help anyone could offer would be GREATLY appreciated. Do I need to pay in order to have it convert? And how exactly do you convert? Do I just go to file....convert to... ? (like I was doing)
Thank You!!!

I'm guessing your Sony Handycam is actually MPEG-2, since I would have thought that Sony equipment will produce full TV frame sized pics. MPEG-1 is usually for half-sized video.
Download VLC, which should run the MPEG-2 video, and get info to see what it says it is. If it is MPEG-2 then you will need to download the QT component. I know it costs but it is worth it for its QuickTime integration.
http://www.videolan.org/vlc/

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