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I have this program called NSVD (I can't remember where I got it from, I've had it for quite a while) and it can demux an NSV file back into an AVI (keeps the exact same information so you could probably have some luck opening it in VirtualDub or something if you still want to convert it to something else). Also, the program can output to an MKV (matrosoka) and the audio doesn't have to be put with the video, it can be placed in a separate file. So, far I haven't really had any glitches in using it, just had problems with going into MKV and using h.264 in general.
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