Right click on the file and it lets you convert the file to a DVR-MS, which is obviously supported by many transcoding apps.
I personally do that, then use
VideoRedo TV Suite to chop the file how I want it, save as another DVD-MS file, then if I want to convert to another format I use
Handbrake to make it into a H264 MKV - I used to use AutoMKV, but it has random blue-screen issues when using the H264 encoder for many - me included when I upgraded to Win 7, and Handbrake is much faster at encoding H264 anyway.