I have a Satellite STB which saves .mpg files.
I can't play them through vlc and avidemux gives me a blurred output?
Is there any way I can edit these recordings?
EDIT: Here is a link to a very short clip in this format (6.6MB).

mediainfo output:
General
Complete name : CCTV-11[02JUN2012-183712].mpg
Format : MPEG-PS
File size : 3.94 GiB
Duration : 1h 43mn
Overall bit rate mode : Variable
Overall bit rate : 5 473 Kbps
Video
ID : 234 (0xEA)
Format : MPEG Video
Format version : Version 2
Format profile : Main@Main
Format settings, BVOP : Yes
Format settings, Matrix : Custom
Format settings, GOP : M=3, N=12
Duration : 1h 43mn
Bit rate mode : Variable
Bit rate : 5 108 Kbps
Maximum bit rate : 10 000 Kbps
Width : 720 pixels
Height : 576 pixels
Display aspect ratio : 4:3
Frame rate : 25.000 fps
Standard : PAL
Color space : YUV
Chroma subsampling : 4:2:0
Bit depth : 8 bits
Scan type : Interlaced
Scan order : Top Field First
Compression mode : Lossy
Bits/(Pixel*Frame) : 0.493
Stream size : 3.68 GiB (93%)
Audio
ID : 192 (0xC0)
Format : MPEG Audio
Format version : Version 1
Format profile : Layer 2
Duration : 1h 43mn
Bit rate mode : Constant
Bit rate : 256 Kbps
Channel(s) : 2 channels
Sampling rate : 48.0 KHz
Compression mode : Lossy
Delay relative to video : -921ms
Stream size : 189 MiB (5%)