Can i do this with avi/mpeg files?
 

I burn avi/mpeg files onto a CD-R if they fit and watch them on my ps2 dvd player?

yes but not very well start with link below
ps2vcd

Since this will be on a cd-r, do i need gameshark 2 to play them? Or dose it read it without it? BTW can you explain this a little better it was kinda hard to understand.