Format Factory is a freeware program. Respond if you are using the program currently. I am confused about how to convert Video TS to AVI (or MP4) using this tool. Other tools such as Wondershare File Converter Ultimate leave a watermark on their trial versions. Format Factory should produce a clean AVI or MP4. I also have AGK (Auto Gordian Knot) but the VTS files failed to load because AGK encountered an audio error of the type: ??? AC3 2ch. I am able to view the VTS file set using VideoLan player. The goal is to repackage the black and white movie content in a small file size.