Just found out that Zodtt has been working on an app. called vlc4iphone , now renamed as Zodplay. Here are some specs from the official site. [http://zodttd.com/] - File browsing. No longer be restricted to any one directory. Browse any location you choose. - EVEN MORE media formats supported (performance depends on resolution) such as FLV, XviD, H264, MPEG4. AAC, FLAC. Though untested, subtitles should also work. - Audio visualizer plays during audio. No more blank screen! - More stable. Though you must be a beta tester to download the app. Anyone tried it?? OMG if I can play .avi without converting them to .mp4 I would be the happiest gadget owner!!