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According to 1 and 2, it does not.
But you can convert the MPEG-2 files with MPEG Streamclip to an MPEG-4 encoded file, but you may need the QT MPEG-2 Component, which costs 20$ I think, unless you have Final Cut Studio.
 
thanx,

i have both, mpeg streamclip & qt mpeg-2 plugin ...

i use it to burn dvd's from my dreambox data.
 
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