don't see why not, its only a form of mpeg2, but it depends on having the correct decoder.

there's generally 2 types of mpeg2: ts and iirc ps. ts (iirc transport stream) includes extra error handling information, to cope with interference on freeview or lost packets over internet for example. ps is more like you get on a dvd, it doesn't need as much error handling as its not being transmitted.

Discussed here:
http://talk.maemo.org/showthread.php?t=35203&page=3

basically, ts is doable but a bit more hassle. alternatively repack into an avi or mpeg2 ps container, which should be pretty quick as it just needs to strip out the error handling. this should also make them slightly smaller.

my personal preference is to re-encode to h264+aac anything that don't play as after installing extra decoder package. any resolution bigger than phone (eg 720p) gets scaled down to 800x480.