According to this http://support.microsoft.com/kb/316992, WMP can play MPEG. I tried out the sample file on the page and it works. When I try to play my MPEG videos though, it says that it may not support the file or it may not have the codec.
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Verified answer
WMP needs codecs installed to play alot of different video types and you usually have to pay to get them. I would suggest getting VLC Player it can play many different types and its free! Just google VLC Player
Hope this helps :)