I was just sent a DVD with 19 small video files on it that the client wants compiled into a 2 minute corporate video. When I went to import them into FC it's all grayed out and not selectable. So I figure the format is off and go to run them though mpeg streamclip. It gives me an error saying "Can't create MOV file." The files are named xxxxxxx.mod and when I look at the info it says it's a mpeg program stream. I've never heard of that. Is there a way to make these files workable? I'm stuck.

These are possibly encrypted program streams or are not encoded in a typical MPEG format. You can try the Perian QuickTime extension although some people have problems with it: Perian - The swiss-army knife of QuickTime components (http://perian.org/#detail)