iTunes will not import mpeg2,it has been designed to only import mpeg4 or H.264 which is an advanced mpeg4 format.
But .... if you do have QuickTime Pro, you will see options within both QuickTime & other programs to convert to iPod compatible format.
Directly via QT Pro you can do it via opening the video, choose Export from file menu, choose iPod or MPeg4 format, else choose Quicktiime Movie format, click Advanced button, click Settings & choose H.264 format. You will see iPhone format option too.