Remember how NXP Software surprised the world with its CineXPlayer
iPad app just two months ago? Well, the gang is back to give our iPhone
(3GS and 4) and iPod touch
(3rd and 4th gen) the same dose of Xvid
goodness. Like its older sibling, this $1.99 CineXPlayer utilizes the same method for easily sideloading your AVI files via iTunes (under the iDevice's Apps tab), and you'll also find a familiar-looking interface topped with an extra rotation-lock button -- much more useful than iOS' native lock that only lets you watch in portrait mode. Alas, video files other than of Xvid and DivX nature aren't currently supported, but hopefully it won't be long before the VLC iPad app
gets a smaller variant as well.
CineXPlayer for iPhone and iPod touch