File conversion, from .mpg files to useable files for iMovie on new MacBook

i wasnt really sure where to post this, but since my end goal is to be able to use all my videos for editing on iMovie it seemed like the best place, i have many .mpg files that i would like to simply convert to a file of equal quality that iMovie will recognize, theres pages and pages of converters on google but they either are trial versions that will leave water marks or there are websites that will only convert files up to 100mb, i just need a simple converter for the videos i have, i dont want to spend 50 bucks on software that ill only use once and i obviously dont want water marks or a decrease in quality, if anyone has any suggestions that would be great.

You want MPEG Streamclip: http://www.squared5.com/svideo/mpeg-streamclip-mac.html which is a free download.
If your movie is an MPEG-2 or VOB file (i.e. from an unencrypted DVD), you also need the MPEG2 Playback Component from Apple: http://www.apple.com/quicktime/mpeg2/ which costs US$19.99

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