I think that a Windows Media File & Quicktime format would be excellent. If you decide to do the Internet download, remember that you do have the occational MAC user, so Quicktime would be nice for them, until they face reality.
I would also like to add that I have not owned a VCR for 5-6 years. There is no way I would buy a $30 VHS tape even if I had a VCR. If you do not have a DVD player, you are in the minority. Even 12v portables are under $120.
Note to everyone: The movie "Wind" with Mathew Modine and Jennifer Gray will finally be released on DVD March 11th 2003!