I do this all the time. I absolutely use Windows media 9 for full screen video playback and I use the Windows Media encoder to encode it. I usually make it 640 x 480 from and uncompressed AVI clip and deinterlace it. Interlacing looks very bad on a comuter screen or projector.
I keep it around 2000 mbps. Also, although someone suggested a poster frame, I find I get a better transition in and out of the clip if I fade from and to black beginning and end. Stick with that.
As for versions, I use 2003 on the PC and if they use PPT 2002 or 2003 everything should work fine. If they are using 2000 some of the fades you might use might be cuts. They will have to have Windows Media 9 player on their PC to playback the movie. Do NOT settle for WMV ver 8. So your requirements would be PPT 2002 or greater and Windows Media Player 9. If you only have Windows media clips playing full screen and no other embedded external files you can use the 2003 PPT player and everything should still work, and if it does, then they only would need the WMV player 9.
Use windows media for full screen (and even smaller clips on a slde) playback of video.
Rich Rubasch
Tilt Media