Well there's always MMPlayer... Plays DivX, etc
I've almost given up on the Tungsten T for anything more than iSilo and a small PDA I can carry around with me.
I bought an iPAQ 3635 the other day for a very reasonable price, and although it's "huge" compared with the T, I can play videos on it, email, icq, msn on it. And all at the same time
And I hate to say it, but the audio quality on the T (while good) pales in comparison with the iPAQ. The audio on the iPAQ has a greater range. For example on the T, the audio will sound tinny, and very soft, but on the iPAQ, it's loud, and the audio is more "full". My only complaint with the iPAQ is that it's TOO LOUD.
If I ever do get tired of Pocket PC 2002, I can always switch over to Linux on the PDA. It seems promising.
The included sleeve for the iPAQ has Bluetooth, so I don't really lose any functionality there. I think I'll be picking up a PC Card sleeve with the external battery so I can put in a wifi card and the larger and cheaper CF cards in at the same time.
CF cards are much cheaper than SD now. It's much more economical to use those to store movies, etc.