An MPEG-DVD is a DVD-disc with MPEG-files burned as a regular data-DVD.
To try out the MPEG-DVD compatibility of the Denver DVD-176, I burned a DVD with the same structure as the CD I burned to test MPEG-compatibility. Then I inserted it in the DVD-player and hoped for the best.
To my surprise, the DVD-176 had no problems with this disc! It displayed the MPEG pictures and everything behaved exactly as in the MPEG-compatibility tests!