yeah, MPEG2 should be your choice, if you need to compress your videos.
it is compatible and standardised.
not interlacing issues etc.
for divx/h.264 there is no good throughout support over all sorts of applications.
also mpeg2 is easily being 'reformatted' for DVD-Player compatible DVD-Video-Discs.
divx and h.264 will need re-encoding.
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