I don't know if this has been posted anywhere yet, I didn't see anything about it. I was having the same problem many people were having with getting Vob files onto the Insignia and the program crashing all the time. Then I tried the steps below and all is working, so I'm posting this here for anyone who needs help:
Uninstall the Arcsoft Media Converter that comes with Insignia, then, buy the full Arcsoft Media Converter, you can get it at http://www.arcsoft.com/products/mediaconverter/?l=v
or get it at another place you know of
, then install the full Arcsoft Media Converter, and then proceed to reinstall the Arcsoft Media Converter that came with the Insignia.
What this will do is add a profile for Insignia in the full version of Arcsoft Media Converter. This will allow Vob files you try to convert to not freeze and close itself.