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I'm trying to add a movie to Blender's video editor; a mpeg video. It crashes every time regardless of the size of the video. The video is an animation rendered out by Blender; .mpeg with mpeg2 codec.

While trying to solve it, I realized I need video with transparent background; so what format should I re-render out in that supports transparent background that I can then import into the video editor without crashing?

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    $\begingroup$ Please ask only one question at a time. This question answers your file format question. $\endgroup$ – David Jun 5 '16 at 19:39

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