Using Video In MX. HELP!

I am trying to use video footage in Flash MX. I imported an entire video, I was very impressed with the compression down to only 3mb from 60mb of the original .Mpeg with sound.

I am trying to just cut out a few selected frames from the video, I can’t seem to do it. If a Drag over about 50 frames halfway through, and select copy frames and paste into a new symbol I get 50 frames from the start of the movie.
If I change the 50 frames to keyframes each keyframe changes to the starting movie frame.
I have no idea how to get around this problem…
anyway I can alter the frames in the movie separately?

Also compression is a big factor, within MX how will compression of .Avi / .Mpg / and windows media compare against each other.
I want to keep a sequence I am creating below .5mb if possible.

I could use snag it to get the pieces of several videos, that I want into 1 sequence. The only problem is that it creates files in .AVI which is typically larger tha .Mpg.
To change it I will have to go all the way through pinacle studio, which I have no idea how to use, not even installed as yet!

Info much appreciated!

Video, like sound, can’t be edited in Flash. Use any video editor to make your changes, then import (try virtual dub, is free)