Yeah, will it? Bacause VideoWrap! itself asks to chose best quality footage, for best results, and then it prevents me to choose that best quality source. So in order to compress something using VW!, I need to compress it first with something else (I work on uncompressed files). Makes little sense to me really.
So don't get me wrong - VW! is a great idea - to solve those different format problems. I would just wish it's enough for compressing, without using other apps. I would personaly put uncompressed footage compatibility in a first place on my list of important updates. Just before using DVD movies format