When I load it in Pinnacle Studio 8, it chops the file into different scenes.. so you can delete parts, move things around and put transitions and texts at certain parts of the footage.
Can this be done in Vegas, i've been messing around with the program for days and can't find anyway of doing this.
You can eit an MPEG file in Vegas but it's not a great idea editing MPEG files with most NLE software anyway.
MPEG uses temporal compression. You don't have full sequential frames & as such you can't do frame accurate edits. If you do edit it means re-encoding an already compressed file which hits quality.
As I say most NLE is geared towards dealing with .avi files.
You could convert your MPEG file to .avi with free program like DVD2AVI or you can do it in Vegas with the limitations I mentioned.
If you place your MPEG file on the timeline, place the cursor at any point & press "S" key , does it not split (cut) the file ?