If you already have MovieFactory 6+ on your machine and then install MSP7, you will find that MSP7 will install an SE copy of MovieFactory 2.
It
might affect some of the windows associations such as double clicking a UFO file from windows Explorer
might run MovieFactory 2 rather than MovieFactory 6+ or if you have it, Photoimpact. Those associations are however easily restored by right clicking a UFO file and selecting "Open with" and ticking the box that says "Always use
this program to open files of this type."
If you are confident at tweaking the windows Registry you can also get MediaStudio to Open your full version of MovieFactory 6+ rather than the SE version MovieFactory 2.
A clue how to do it is found here:
Reg fix for Full Version of DMF4
This was written for MediaStudio 8 and at the time the latest version of MovieFactory was 4 but you can easily work it out.
DV(avi) files can be played on a desktop computer. Various software allows you to do this including Windows Media Player, PowerDVD, WinDVD, Nero Showtime and lots of others. If your TV has suitable inputs you can even connect your computer to the TV and watch it that way.
VideoStudio X2 will accept and allow you to edit MPEG files.
Where a choice between DV(avi) and MPEG exists - such as moving stuff off a digital camcorder to the hard drive, it is always recommended to use DV in preference to MPEG but that does not mean you cannot use MPEG. Often you do not have the luxury of choice. For instance most TV cards in computers will only record in MPEG anyway.