Import from DVD for use on Web

Hi

aplogoies if this is "an idiot question" but this is my first foray into premiere.

A clinet for whom I'm doing a web site has given me a DVD with demos of his products in the vob format. Ie the dvd has two folders on it one audio one video I think!.

I downloaded avs video convertor and converted the vob files to AVI and mp4

If I import the mp4 into premiere they are imported ok, if I import the avi I get the following error

unsupported format oor file.

I have trawled the forum and opened the file in Gsot with the following results

.

I suppose I have two questions, the end video will be going on a youtube channel so am I better to just use the mp4 conversion or should I convert to AVI. If the latter why do I get this error

thanks

Ian