MPEG 2 - gives high quality but does the big files
mpeg 4 also gives high quality but file size is less, than for mpeg-2
also mpeg-2 support all dvd players and PC, but MPeg-4 can be not supported... (required codec, for example)
You can create MPeg2 and later convert to MP-4, if need. For convert can use special converting software, for example, i'm useing
VideoChrage.
Regards