| wmv files are almost always (but not necesarily) encoded using the mpeg-4 codec. This codec represents the highest possible quality at 'low' bit rates. (high bitrates beeing directly from DVD etc) regular .mpg is mpeg-1 and is HORRIBLY antiquated and inefficient. It creates poor quality video with large file sizes.
DIVX is what everyone should be using, but if you must, WMV (ms mpeg-4) is a good choice.
btw: my linux box plays anything i throw at it just fine, all in the same player: mplayer.
Antihero
Stage XVII Pieces 
Loving the Beats
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