H.263 is not an older version of H.264.
H.264 is also called MPEG4 Part 10. It's the bomb.
The MPEG4 implementation on EVOs and many other phones is MPEG4 Part 2. It's weak.
H.263 is a different codec and is suitable for smaller frames at lower bit rates - read: videochat.
MPEG-4 Part 2 is H.263 compatible in the sense that a basic H.263 bitstream is correctly decoded by an MPEG-4 Video decoder.
MPEG4 Part 2 is partially based on H.263.
But no way is H.263 an earlier version of H.264 - that's too oversimplified to be helpful, in my opinion.
mp2 is MPEG-1 Audio Layer II and mp3 is MPEG-1 Audio Layer 3, so yes, that one fits.
PS - MPEG4 is the best setting for video quality on an EVO.
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