It doesn't play DivX XVid or X264 MKV's which accounts for around 90% of stuff you are likely to get on the internet for starters (outside of the iTunes Store)....
Well it does if you want to do some serious hacking but given there are cheaper things (see above) that do this out of the box ....
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Well it does if you want to do some serious hacking but given there are cheaper things (see above) that do this out of the box ....