Convert MPEG to MP4
MPEG-1 and MPEG-2 predate MP4 by a decade and use codecs MP4 can't hold. Wave re-encodes both streams with LGPL codecs into an MP4 that plays on modern devices.
What actually changes
MPEG-1 System Streams (.mpg, .mpeg) held the VCD-era video codec plus MP2 audio. MPEG-2 Program Streams held the DVD-era codec plus AC-3 or MP2 audio. MP4 accepts neither video codec, so this conversion is always a re-encode.
Wave prefers your browser's WebCodecs H.264 encoder - hardware-accelerated on almost every modern laptop - and falls back to the LGPL MPEG-4 Part 2 encoder inside the wasm core when the browser has no H.264 encoder to expose. Audio always re-encodes to AAC. Interlaced sources (common for MPEG-2 DVD rips) get a yadif de-interlace on the transcode path before the encoder sees the frames, so the MP4 plays cleanly on progressive displays.
Three steps.
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Step 1
Drop the MPEG (.mpg / .mpeg) file onto the card.
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Step 2
Wave shows Re-encode needed - MPEG legacy codecs always take this path.
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Step 3
Convert and save the MP4.
Answers, specifically.
What's the difference between MPEG-1 and MPEG-2?
MPEG-1 was for CD-based Video CD; MPEG-2 was for DVD. Different resolutions, different quality, but the same container conventions.
Does the DVD-quality look worse in MP4?
Not noticeably. Wave targets a bitrate that preserves visible detail. Interlacing artefacts, if any, survive as-is - deinterlace at a later step if you need to.
Can Wave rip a DVD?
No. DVDs use CSS encryption plus VOB file structure spread across a disc image. Wave converts individual files that you already have on disk.
What about surround audio?
The current build outputs stereo AAC. Multi-channel audio pass-through is on the roadmap.
Are the MPG and MPEG extensions the same file?
Yes. Different extensions, identical container. Wave treats them the same.