Power DVD will play it, so will the ATI DVD player. The problem you're having is you don't have the mpeg-2 codec installed. You have the co* part(compress) just not the *dec(decompress) part. Once the mpeg-2 codec is installed(by installing any software DVD decoder) you'll be able to play it even in WMP or other video players.
Mpeg-2 codecs are not generally available without some sort of purchase due to royalty's required. This becomes an issue with trading Mpeg-2 captures with your friends without them having mpeg-2 codecs installed. Some rental DVD's will install basic DVD software decoders.