MPEG Streamclip is still a very useful (FREE, NON-CRAPWARE) tool for encoding to various formats, especially for prepping material for video edits, but hasn't been updated in a long time and in recent Mac OS versions appears not to work properly. The video display within the MPEG Streamclip window looks all scrambled and there's some other strange behavior. If I remember correctly that started with Mac OS X 9 (Mavericks), definitely an issue on Yosemite and beyond.

1) Be sure you have the most recent BETA version, as of this writing from August 2012 (1.93b8)

2) Open Applications folder, select MPEG Streamclip's application file, do "Get Info" (command-I)

3) check the two items "Open In Low Resolution" and "Prevent App Nap"

4) MPEG Streamclip should now work correctly.

Be sure to read about "MPEG-2 Playback Component" on the site if you're converting material from DVD's/VOB files.

www.squared5.com

Maybe if enough of us email the developer he'll get interested in doing updates again. I don't know of any free tools on Mac OS that can perform all the tasks possible with MPEG Streamclip.