Forgot to mention I have a Matrox MXO2 hooked up to this machine. However, this happens even when not using it. Also, when I do choose MPEG2, when I press the EXPORT button it again stops and waits a few minutes before starting the export.
Quick question: are the Matrox drivers up to date?
Yes they are. I just updated video card and Matrox drivers. This problem happened before and after updates.
Super quick and easy fix from Matrox -
If you find that switching the export format in the Export Settings dialog
box sometimes takes a long time, such as when you switch from Microsoft
AVI to MPEG2-DVD, rename the SurCodeWrapper.vca file on your system
(for example, rename the file to SurCodeWrapper.vca.bak). This file is
usually installed by Adobe Premiere Pro in the following folders:
C:\Program Files\Adobe\Adobe Premiere Pro CS5\MediaIO\codecs\
C:\Program Files\Adobe\Adobe Media Encoder CS5\MediaIO\codecs\
Safe Harbor Computers
That fixed it. Thanks!