Understanding video formats/codecs

what is a good reference for a beginner to understand video formats, compatibility, codecs, and the programs associated with converting these?
I'm using Final Cut Express. I friend with a macbook has a video on it that was in a '.mpg' format. He also had the same video in two folders that were ripped from a DVD, they had to folders for Video_RM and Video_TS, I think.
Anyways, I was hoping to pinch hit a quick video for him last night, rather simple 2-3 minute deal, where I use FCE to edit the video down. FCE didn't see the file as a movie. Neither did Quicktime 7 Pro.
I rummaged around these forums enough late last night to find that handbrake and VLC might help. I finally was able to convert the file using handbrake to a readable format, mPv. iTunes enjoyed playing that version and QT7 Pro would play it also. FCE didn't play nice though. Still stuck.
So I thought I'd be smart and let QT 7 pro convert the file to a .mov format while I slept. Right. 5 hours laters, my computer is still happily crunching away on the file and isn't quite 30% done if the progress bar is accurate.
Any suggestions and reference materials is appreciated.

Do not use Handbrake for this task. It is designed to convert DVD-Video into formats that play on other devices like iPods, iPhones, etc (converting one delivery format to other delivery formats).
Use MPEG Streamclip or DVDxDV to convert the DVD's VOB file into an editable format that matches your FCE Sequence settings. Typically that would be QuickTime DV/DVCPro NTSC with audio being AIFF, 48 khz, 16 bit.
what is a good reference for a beginner to understand video formats, compatibility, codecs, and the programs associated with converting these?
The FCE manual or help file is a good place to start. Also check this: http://en.wikipedia.org/wiki/Video_codec
For absolute basic information, understand that some codecs are for final delivery and some are meant for editing.
-DH

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    > We?ve got a project coming up that will involve a lot of
    short (2 min) videos
    > so I?m thinking it?s time to review our video standards.
    The source is
    > typically a mastered DVD video disk (I know, not a good
    source but most
    > corporate clients don?t know any better) or in rare
    cases hi-rez MOV?s straight
    > off something like an Avid system. Either way we?ve got
    to crunch these files
    > into something that plays well with Director 11/XP-SP2
    and Vista (I love Mac?s
    > but it has been a long time since any of our clients
    cared if a project was Mac
    > OS compatible).
    >
    > In the past we?ve used MPEG-1, MPEG-2 in limited
    circumstances, and our
    > current standard is 720 x 480, WMV-9 (main, not the
    advanced profile),
    > 1000-5000kbps depending on storage constraints. Delivery
    is almost always disk
    > based so bandwidth is not an issue however some of our
    clients like the 3?
    > mini-CDs (180Mb) and even on a full sized CD storage is
    often a concern
    > (distribution of our projects on DVD-ROM is still
    uncommon). Lately we?ve been
    > getting requests to convert the source files to FLV/On2
    or Sorenson for
    > web/Flash applications and I?ve been wondering if it?s
    time to start using
    > these in Director as well. Has anyone been using this
    format or have opinions
    > on getting the best possible video into Director while
    still being compatible
    > with an average corporate user?s PC?
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