Same question I ask also for MPEG1 and MPEG2 Video???
I've never had any problems running movies through Frogger under emulation. Runs perfectly smooth and all... the only thing I haven't got working correctly is that playback seems to be limited to not use all available colours. Maybe this is a limitation in the demoversion of Frogger... I don't know.
Point of it all... you don't really need to use a special device, like you will need when running AHI, to watch .mpg and .avi...