VLC Media Player
VLC is a free and open source multimedia player. It reads almost every video file, yet it's very powerful and simple to use.
What's New in Version 1.1.0
Runs on the iPhone 4, iPhone 3GS, and the recent iPod touches
You can now delete files from the application, without having to go through iTunes
Many more extensions are being recognized
Much faster decoding thanks to assembly optimizations