You can't unless the appropriate codec was used (ie H.264) to encode the video. If your video is encoded with a different codec the Xoom will default to software decoding, which is too slow for smooth full HD (ie 1080p) playback although 720p ought to work OK.
I was rather disappointed to learn this. Suitably encoded 1080p videos do play smoothly but you cannot assume that the Xoom will handle anything you throw at it - sadly it cannot.
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