A month or two back, I shelled out US$4.99 to pick up a copy of yxplayer, a video playback utility available on the App Store. Yxplayer isn't particularly user friendly or over designed. I am also about as far away from yxplayer's core demographic as anyone can get. (More about that later.) And yet, I'm going to give it a double pair of thumbs up and recommend it to anyone who owns a video-capable camera that shoots AVI video.
I am a mom. I own an inexpensive Creative Vado unit. Right now they're selling at Amazon for about $50. We picked ours up at a Newegg sale for something like $25 shipped last year. It's a great little Flip-like video system that my 7-year-old can happily use and that works well with our living-room media Mac mini. It takes pictures (they aren't fabulously good) and shoots AVI video (ditto) and my son loves it to pieces.