I have downloaded the VLC program and used this command:
vlc input.mpg --sout=#transcode{vcodec=mp2v,vb=600,width=320,height=240}:es{access-video=file,mux-video=es,dst-video=output.m2v}
VLC opens and seems to transcode the file but when its finished i can't find the "output.m2v" file.