There are a few threads in this forum relating to "error compiling movie" messages, but none relate to the problem as it manifests itself on my system.
First of all:
Windows 7 64-bit
Nvidia GTX 460
16 GB memory
Now, I have a project which has a wide variety of media, from AVCHD to iPhone video. It's about 17 minutes long, and I can output the entire project as a Windows Media file with no problems. But if I try to output an Mpeg-2 DVD file from within Premiere, I get an "Error compiling movie. Unknown Error" message. If I try to output a Mpeg-2 DVD file in AME, it will lock up at different points each time. But, if I use dynamic link to bring the project into Encore, it renders fine.
What might be causing this? I've read on this board that down converting AVCHD footage to SD using Encore does not produce a video that looks as good as doing it from within Premiere, so I'd like to be able to do this.
I can't say why it's happening. But you can install a free, lossless codec like Lagarith or UT and export out an lossless AVI file. Then you can use AME to create the MPEG form that AVI Master.