Depends on the length of the clips. 30 second stroke clips look great with mpeg and work everywhere.
If you have long movies like I have (1 hour) surfers don't want to download 400 clips just to watch 1 movie though, so advertising or not, rm rules. If you check out the new realone player you'll be impressed. Never had a single member with a problem or complaint using it.
Dont even consider wmv, its broke on the latest Media Player 9 without a patch thats hard to find, for authentication.
Divx besides needing a download - when I called them they wanted $5,000 to license the codec for a pay site.
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