CineXPlayerHD is a jack-of-all-trades iPad app (US$3.99) that can play just about any video format you throw at it. This latest version, 3.0, adds playback of the popular MKV format on the iPad 2 and above. The app supports 720P HD playback, and also Dolby Digital Plus with support for 5.1...
ffmpegX, my video encoder of choice, has released a new version (0.0.9w) that is a Universal Binary (I bet it encodes like lightening on one of the now Intel Macs). This version only supports OS X 10.3 or higher, so you pre-Panther folks will need to use an older version. Other than the Universal...
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