Managing video format ...

Hi,
Maybe this is all easy stuff, but for now it seems very complicated.
I am trying to better understand how to create, edit and manage video files. I am mostly concerned about all the diffrent formats available. For sure I cannot keep a version of the file in each format, so can somebody help me or direct me where I can better understand all these format, there use and need: avi, mp4, m4v, mkv, and more and more and more ...
I am an ordinary father that wants to keep familly video made with my present photo camera or with a video HD camera that I want to buy soon. I want to keep an archive of the best format and then later export it to another format depending of the needs:
1. add the file to my video in iTunes to stream to an Apple TV device
2. burn the file to a rewritable DVD and play it on my DVD player
Thanks in advance.

2. burn the file to a rewritable DVD and play it on my DVD player
Do you intend to use iDVD for this? If that's the case it won't matter a lot which format you use as iDVD will reduce the image down to 640 x 480 during the encoding before burning. This post describes the formats supported by iDVD: http://discussions.apple.com/message.jspa?messageID=8436154#8436154.
I suggest you pose your question in the iDVD forum and the iMovie forum to get more info.
TIP: For insurance against the iPhoto database corruption that many users have experienced I recommend making a backup copy of the Library6.iPhoto (iPhoto.Library for iPhoto 5 and earlier versions) database file and keep it current. If problems crop up where iPhoto suddenly can't see any photos or thinks there are no photos in the library, replacing the working Library6.iPhoto file with the backup will often get the library back. By keeping it current I mean backup after each import and/or any serious editing or work on books, slideshows, calendars, cards, etc. That insures that if a problem pops up and you do need to replace the database file, you'll retain all those efforts. It doesn't take long to make the backup and it's good insurance.
I've created an Automator workflow application (requires Tiger or later), iPhoto dB File Backup, that will copy the selected Library6.iPhoto file from your iPhoto Library folder to the Pictures folder, replacing any previous version of it. There are versions that are compatible with iPhoto 5, 6, 7 and 8 libraries and Tiger and Leopard. Just put the application in the Dock and click on it whenever you want to backup the dB file. iPhoto does not have to be closed to run the application, just idle. You can download it at Toad's Cellar. Be sure to read the Read Me pdf file.
NOTE: The new rebuild option in iPhoto 09 (v. 8.0.2), Rebuild the iPhoto Library Database from automatic backup" makes this tip obsolete.

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    I thought the iPad 2 could play almost any format.

    Must conform to these specs:
    Video formats supported: H.264 video up to 720p, 30 frames per second, Main Profile level 3.1 with AAC-LC audio up to 160 Kbps, 48kHz, stereo audio in .m4v, .mp4, and .mov file formats; MPEG-4 video, up to 2.5 Mbps, 640 by 480 pixels, 30 frames per second, Simple Profile with AAC-LC audio up to 160 Kbps per channel, 48kHz, stereo audio in .m4v, .mp4, and .mov file formats; Motion JPEG (M-JPEG) up to 35 Mbps, 1280 by 720 pixels, 30 frames per second, audio in ulaw, PCM stereo audio in .avi file format
    Or download an alternate video player,such as avplayerhd.

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