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Imovie not accepting mp2 or mp4

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I have an up to date Imovie and I am trying to import mp2 (mp4) videos into the program. The videos are form my video camera and are renamed MOD files. The files work as m2v and mp2 using VLC. How can I get Imovie to work with these movies?
 
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Your Mac's Specs
2011 MBP, i7, 16GB RAM, MBP 2.16Ghz Core Duo, 2GB ram, Dual 867Mhz MDD, 1.75GB ram, ATI 9800 Pro vid
Check this thread. Found it by search for the keywords; convert mod file.
 

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