Converting MPEG to VOS or VcD is out of the question. It takes to long. I found a solution and it was (PS2Reality Media Player)
You can use it by cd/dvd or by Ps2vfs which acts like a server by installing files to your MC your PC connects to the PS2. I went with PSvfs method so I wouldn't have much down time. So basicaly I stream movies from my PS2 which is kind've cool. You can also veiw JPEGS and listen to mp3's.Thanks for the reply .