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Movie Maker 2 only outputs .wmv files for Pocket PC.
Kinda sounds like coolhand is having about the same problem I had, which is why this thread exists to start with, although it also sounds like he's having problems in either viewing mode.
Near as I could tell, the whole issue I was having was getting two codecs together (along with the viewing window size and framerate) that would use roughly the same CPU resources, keeping the audio/video in sync. The problem I had with the 22Khz mono with almost any DivX bitrate was the video took more CPU so on the PPC the audio would play ~ 1 second before it should have, but the desktop was perfectly synched. In portrait view, those settings are fine, and with the Fraunhofer codec, but for landscape (so far at least) I have had to use the Lame codec, and stereo, to get the audio to stay synched.
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