FCP X won't import a .MPG movie with mpeg 2 codec

I am running Mac os lion. I am unable to purchase the QuickTime mpeg 2 plug in to run the video in lion for some reason. I would of expected FCP X to be able to read this file. Am I missing something? How do I convert it? I tried mpeg stream clip but without the mpeg 2 plugin it won't play the video. I think there is an issue with lion here, but my main question is why doesn't FCP handle this. Any tips appreciated. Thanks