MPEG2 and MUXED

I have learned that I can successfully import MPEG2 MUXED to iMovie 08 but I am not sure about FCE4. Can I or can't I? I have in the past used MPEG Streamclip to convert it but that application seems to degrade the original quality somewhat. I would really like to use FCE4 instead of iMovie 08 but prefer not to have to change the format to do so unless there is a better way, faster and less impact on quality than I get from Streamclip.
Thanks in advance for any answers.

Where it seems to be a lessor quality is in the color rendition.
But I just imported to iMovie and noticed that it saves the imported mpeg as a .mov file. I imported one of these clips to FCE4 and the audio was included.

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