MPEG 2 is purely designed for DVD production. They may not look as good as it will be interlaced (not progressive scan) so you will see the fields flickering. If you get a good mpeg 2 player it will intergrate these two fields and make the playback seem a lot smoother.

It really depends on what you intend to do with the video. I would only use mpeg 2 for dvd production. Stick with WMV or AVI or Mpeg1 for use on computer or internet as you can get smaller files.