Looks like a problem with field order. Try recoding the MPEG2 file with the field order reversed. The field order depends on the TV system (eg PAL or NTSC). The reason it plays OK on your PC is because there is no field order - PC displays are progressive. Jerky horizontal movement is almost always caused by wrong field order being played on an interlaced TV system and is a common problem in creating home DVDs. Some video cameras produce a progressive scan output (Canon MV series for example) which if captured/edited/encoded without paying attention to field order will cause the effect you describe.