yes you can.

actualy since dvd video is mpeg2 itself your player should be able to read most mpeg files without putting it on a dvd,just put ur DLed mpeg on a CD if its smaller than 700mb the same way you do when you burn a data cd and the player should be able to read it that way.
or if it wont cooperate that way you can just burn it to a dvd as normal.(i dont think you get the chapters and u cant skip around in the movie with the data cd method)

i find it much ez er to record my DLed movies to VHS tape because my dvds often fail and tapes are cheeper than blank dvds...