I used a program called vob2mpg to convert my video. I imported this into my
movie. Now it hangs the program constantly. I did research and think it may
have been converted into a mpeg2, which apparently Windows Movie Maker
doesn't like. Trouble is, I can't delete the clip I inserted. What can I do
to get rid of it?

I'll try to convert to AVI or mpeg1 now to see if I have more success!