At which Mpeg-2 rate did you encode your video? Do you have accompanying audio tracks?
I kept getting the "high bitrate" error as well (on a 5 min. mpeg 2 "high quality 60 minute" encoded file) until I realized I had mistakenly added two identical copies of my audio file to the video project, which upped the bitrate past the max. Deleting the extraneous track solved the problem.
