Quote: "I dunno, but there must be some kidn of file converter..."
?
Did you get an error that it asked for a password for every item of media that was included in the game?
I had that problem, and there is a work around... Try turning off encrytion, or setting the setting lower.
Infact, it's worth trying a couple of times, I recently had to pack 10 or so levels with FPS pack ,and all of them were done with emptys update, sometimes it takes a couple of tries to get it to work, fiddle with the settings an so on!
I'm sorry that this advice is so ambiguous, I had the same problem, but there didn't seem to be a definite work-around, sometimes it compressed right and sometimes it didn't.
Either re-build with v1 or wait for empty's next update I guess!