Hi 306, welcome to the boards...
First you don't actually convert your VSP into an MPEG, you create a video file (MPEG).
Since you are ready to create a video file, go to
2. Click on the Icon Create Video File
3. You will see a long list of Templates. You need to decide what your video is going to be used as, a DVD, viewing on the internet, sending in an email.. You apparently do not want to burn a DVD, correct?
4. Choose one of the WMV templates, or maybe an MPEG. I don't know what version of WMP you have, but WMP 10 can play MPEG2. So you could proceed to create a DVD compliant video file.
You might want to read the Recommended Procedures
. They will guide you in producing a DVD...