We had a 25 year old VHS home video converted by a local digital shop into a DVD. They gave it back to me and it work great in DIVX. I wanted to convert it to a forma that I can upload to You-tube so others can see it. Since it is not a commercial video I assumed it would not be encrypted so opted to buy the QicktimePro7 upgrade. However, it will not open the video - giving the error message "This is not a movie file". Is this right? If so then I need to ask for a refund of my $32.00 because it is not working as advertised.
It is usually better to do your software research before purchase rather that after. Basically, QT 7 Pro is not a "native" DVD media player and the Apple DVD player (which is a general DVD media player) is not a VOB converter. VOB (i.e., "muxed" MPEG-2 video) can be viewed and/or converted by the QT 7 Pro app if you purchase and install the Apple MPEG-2 playback component. Unfortunately, this is an MPEG-2 video only codec and does not handle "muxed" audio formats like AC3. Luckily, with the Apple MPEG-2 codec installed, you can use a free app like MPEG Streamclip to handle "muxed" MPEG-2/AC3 VOB files. However, even this is probably not the best workflow here.
If, as you indicate, the source files are not encrypted, the best free conversion solution would likely be to simply copy the VIDEO_TS folder from your DVD to your HDD and than use the free HandBrake app to open and convert the DVD content to H.264/AAC file content for common distribution or uploading to web sites like YouTube or Vimeo.
To answer your original question, "Yes, the file is a movie file but may not be supported on your system as it is currently configured for QT 7 use." You should also be aware of the fact that Apple is unlikely to refund your money since it appears you did successfully install the "Pro" key and it did work as advertised even if you did not fully read and understand what it can and cannot do. (I.e., QT 7 Pro is primarily used for the editing/compositing of parallel/elementary program stream files having up to 99 tracks of data. It is a very powerful app if you know how to use it properly to handle compression formats for which your system is configured but it is not a "universal" editor/converter.)