You'll need a fast computer to get anything resembling watchable video out of it, but it works fine. I've played a few video clips on my DP 2.0 G5 and they look fine (320X240), so you shouldn't have any problems on your machine. I haven't tried any big clips, however, so I don't know how much it'll handle before the frame rate falls apart.
Incidentally, I've also tried using WMP Classic or whatever the freeware player that Windows folks always seem to recommend is called, but it was useless--even on very small, low compression (meaning easy to decompress) clips it stuttered badly where the MS-standard WMP worked fine. I don't know if it's less efficient, or if there's just something in the way that it's programmed that doesn't like VPC, but stick to the MS app.