1.
If you want to edit the video and audio from that video separately - add the
video to the video track of the timeline. Then expand the video track so you
see the audio track too. Then drag the audio (of the video) down to the
Music track.
Alternately - you could drag video from the collection directly to the music
track.
2.
You cannot do this directly. You would want to save as DV-AVI and then use
something else to convert it. This is the same thing you'd do for many DVD
burning apps, though more of these apps are taking WMV these days.
