Regarding video, what exactly is the problem you are encountering?
I played alot of full-length movies on my Zaurus, and they all played very well, although I did have some audio/video sync issues with the 5500 since it was not very powerful (at least compared to the CXXX series).
Alot depends on the conversion parameters, movies straight from a camera would likely have problems due to one or more of the parameters being too high, like KBS, frame size or FPS. All of which can be easily fixed by VirtualDub I would think. For DVD-converted movies the process is alot more involved, but 90% of that is CPU time, my actual work s about 10 to 15 minutes, but the PC computer needs to chug along for about 4 hours to create a usable file.
What I do is do all the steps for about 4 movies, except for the last step. Then I run 4 instances of virtual Dub on the last step and kick it off before I go to bed, it is ussully done with all four movies about 10 hours later.
For a small camera movie, I would think VD could fix it up in about 20 minutes or so...perhaps even less depending on length of movie.
Also, I just plyed your google video and it looked pretty good to me (regarding speed and smoothness of playback), so I am not sure what the issue it.
Regards.