Actually, you can export to multiple formats, including .avi and .mp4. In fact, the .mp4 creation interface is particularly versatile and helpful, and the output is great.
Anyway, I love this program and its unorthodox but extremely intuitive interface where you break the videos into squares that you can copy, paste, delete, apply effects to, etc. It's actually an addictive interface.
And if your input is an MPG or VOB, the file manipulation is incredibly smooth and frame accurate.
The program has some quirks (and in a few ways I liked 4.0 even more, although in other ways 5.0 is better), but overall I couldn't imagine being without this unique editor.
Great program (referring to the older version). The new version 5 has built upon the capabilities of the version 4, and added some new features and enhancements.
I feel this is the best MPEG-2 editing software released.