For some reason in Chrome, mpg video wants to download as a file rather than playing in the browser like mpeg video does.
I tried looking in the options, but I cant find a way to force this behavior.

Can anyone give me any tips on how to get this to work?

Can you post an url to the page with the mpeg in question?

Did you find a solution. I have the same trouble. Interestingly when I first installed everything it worked fine. I then installed quicktime for some other reason. The browser then played everything in quicktime. I tried uninstalling it with no luck. I then rolled back with no luck and finally restored to an earlier backup with no luck. I can't believe I can't get chrome to open windows media player inside the browser. The only place it will do it is if it is a windows media format video. Suggestions? I checked all the file associations already and they are set to windows media player. This is in vista by the way.

I too have the same problem. I wish google would make it easy to choose which program runs when clicking mpgs