You can import .mpeg if you have QuichTime 4 or Direct X7 and above installed. Are you making sure that the "Import Audio" box is checked when you import the file?
Hmm .... I had no problem at all. Make sure that "Import Audio" is checked. I have included a screen shot of the import settings I used in Sorenson Spark. Let me know if you get it working ok?
Ugh ... I am using MX ... not 2004 Pro. I hear that program has a lot of bugs
On your screen shot it says that it detects no audio, but it's definitely there because I imported both the audio and video without any problem.
Maybe you should look in the help files for 2004 Pro, or re-post your question, specifying that you are using Flash MX 2004 Pro. All I can tell you is that it definitely works in MX.
I disabled the link for the time being. First stage of the beta-testing is over and I am now into fixing some of the probs and adding new ideas. It will be back up soon so if you want to be included in the next beta-test please send me an email and I will get you on it