Let the hive mind of Engadget get that for you.
"I need help! I want a small pocket camcorder but I'm not sure which one to get. I don't want to fall into the hype of the Flip because I worry two hours won't be enough. What should I be looking for when considering a small camcorder and where can I get a good quality one with expandable memory? Thanks!"
MCE+360 supports WMV/WMVHD and the various mpeg formats - no AVI support at all, of course, mostly due to piracy and such.
as for stuttering, I do not believe it has to do with compression on either side; a wireless connection is inherenitly unstable and is probably the culprit.