Do like just drag / drop to file sharing since I generally hate itunes syncing method.
Did play the couple formats I tossed at it. HD stuff, avi, etc. played pretty well. Like the gestures you can add including double speed.
Just to see, I tried a Windows Media Center .wtv file, which just about nothing plays but WMC and xBox. It downloaded the entire file. Starting playing. Little pixelated, but it was std definition. I was really happy, visions of no more conversions of media files from .wtv to iphone. But then it only played 5 minutes of 30 minutes show. I double checked, but same results.
So pulling two stars for teasing me. If youre using WMC, keep your eye on this app, hopefully theyll fix it. Even though .wtv is not in their list of formats, I hate being teased. Does beat regular iPhone media player. I dont do flv files, so dont care about that, but I know a lot of people do. It may be the player for you.