Zodttd has released vlc4iphone for the iPod Touch to beta testers. I have copied over all the information on it from his site for those who want all the details. Basically what vlc4iphone does is it allows you to play various video formats not supported by the iPod Touch.

VLC by is a popular multi-format video and audio player for a wide variety of systems. Within the past few days I have successfully ported over VLC to the Apple iPhone and iPod Touch. I have also built and used my ogg4iphone frontend for vlc4iphone.

What is vlc4iphone capable of? At the moment it may be limited by only a small handfull of decoders, but soon that list will grow! It currently allows you to drag and drop the following popular media formats onto your iPhone/iPod Touch for playback: MPEG / MPG,AVI,MP3.
It also supports some lesser known media formats.

Soon it will play: FLAC,OGG
I am also researching playback of: VCD,DivX,WMA,WMV

Currently vlc4iphone is only available to ZodTTD.com Beta Testers though as more decoders get implemented and some bugs fixed up, a public release will be made with source code found at my git repo in the downloads section of the forum. This should all happen very soon.

Beta testers, you should see vlc4iphone v0.5.0 available in your ZodTTD.com Installer.app beta repo.

If you have any questions or comments on the vlc4iphone for the iPod Touch, go on over to the forums