Actually that is not true. The IPAQ only plays WMV, ASF in the Windows Media Player that comes out of the box. There is a software that you can d/n that plays AVI,MP4,MPEG1-2, ETC. its called TCPMP heress the Link:
http://tcpmp.corecodec.org/about ---- Thats basiclly what I use its very easy to...