Media Pending means just that. With MPEG source footage, several things need to happen: the file needs to be indexed, the GOP structure needs to be rendered to full, I-frames, the Audio needs to be conformed to 32-bit floating point, and the PEK (Waveform Display) files need to be created. Just be patient, and look to the lower-right of the GUI at the progress bar. Let it complete, and then you should be able to edit.
Much will depend on the speed of your computer, and on the Duration of the MPEG files. Should not take THAT long.
I gave it 5 minutes to load, and the problem is still occuring. Any other ideas?
It depends on how long the clip is and how fast your computer is. But Hunt is correct -- You need to wait for the program to conform this MPEG to a file format it can use.