Problem reading some mpg II files

[monel]

I am using Handbrake CLI in XP.
I have used Handbrake successfully in converting mpg II files into mp4 files; that have been saved via a TV capturing program. I (sometimes) then cut a clip from this file resulting in another mpg II file. When I try to convert this clip with Handbrake I receive an error. This occurs to every clip from this and other files. The converting parameters I use for the clip are exactly the same I use for the initial file! The clip cutting program I am using "Free Fast Mpeg Cut" by DVDVideoSoft. I have tries some others but to no avail.
The error I receive is:
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V:\Toil\mp4>set source*="V:\Video_Tests\Samples\App=Super\_Source\N_A2_OldM_BW.mpg"
V:\Toil\mp4>"C:\Program Files\Handbrake\hbcli.exe" -i %Source*% -o clip.mp4 -e x264 -q 0.6
HandBrake 0.9.1 (2007100800) - http://handbrake.m0k.org/
2 CPUs detected
Opening V:\Video_Tests\Samples\App=Super\_Source\N_A2_OldM_BW.mpg...
ERROR: dvd: DVDOpen failed (V:\Video_Tests\Samples\App=Super\_Source\N_A2_OldM_BW.mpg)
3 [unknown (0x170)] hbcli 3516 _cygtls::handle_exceptions: Exception: STATUS_INTEGER_DIVIDE_BY_ZERO
239 [unknown (0x170)] hbcli 3516 open_stackdumpfile: Dumping stack trace to hbcl
i.exe.stackdump
Scanning title 0...
Scanning title 0...
Scanning title 0...
Scanning title 0...
1116984 [unknown (0x170)] hbcli 3516 _cygtls::handle_exceptions: Exception: STATUS_ACCESS_VIOLATION
1156534 [unknown (0x170)] hbcli 3516 _cygtls::handle_exceptions: Error while dumping state (probably corrupted stack)
V:\Toil\mp4>
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My question is two fold:
1. why does this happen? and how can I fix it.
2. is there a better video cutting program that I can use?
An answer to both questions would be illumunating.

I thank all responders in advance for their assistance, ta.

kind regards
Monel