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I don't think that matters to much since the screen is WVGA (800x480). You will not be able to view it on your phone in 720p format. But I guess you could use the hdmi cord but there are better ways to do it.I hope it supports MKV's soon, or rather do some players already support it? With such a large screen, it'd be nice to be able to watch even subtitled stuff.
Xvid is an mpeg4 codec but I don't know what will work natively aside from the h.264 codec as far as mpeg4 video. Worst case scenario you have to put together or download a preset for your transcoder of choice and do a little re-coding.
