The Zaurii with the 400MHz XSCALE CPU (5600, C750, C760, C860 etc) appears to be able to decode xvid / divx video\'s in real time, however there are two bottlenecks which make it skip / not play properly:
1. Graphics Chip Speed
2. Media Transfer Speed
Problem 1 can be solved by encoding in low resolutions and try to avoid video that updates large portions of the screen as the graphics chip can\'t keep up. Problem 2 is mainly consistent with SD media, I think CF cards and internal storage is fast enough for regular video. This can be solved by encoding in low bitrate (my personal opinion would be keep to 384kbps for SD / MMC and 768kbps for CF / Internal storage).