Most of the cheaper chinese made dvd player can do MPEG now as it's such a common pc video format. Many of the name brands cannot for whatever reasons, like my Pioneer 563. Some of the large name brands are starting to support more formats now though. My 563 will play JPG pictures and MP3's quite nicely however.
I also have a old Haier hd700 with hacked firmware that will do most any pc format but divx, a LiteOn 2001 that will do everything AND divx and a Koss portable that plays normal pc stuff as well. This site will tell you what just about any player made can do http://www.dvdrhelp.com/
and any hacks or firmwares and lots of other good info.