I've had some difficulties with video on my droidX.
I used DVD Catalyst 3 to rip a DVD "From Paris with Love" using the default Droid HQ2 settings. Worked great on the DroidX with the standard movie player.
After that, I ripped a TV show DVD (Leverage s1 disc 1 if it matters) in the same way. I did all 3 tracks queued up. Then I grabbed 3 tivo shows that I copied to my computer using Tivo Desktop also using Droid HQ2 settings.
The end result was all 3 leverage shows would play in the default movie player with no sound. I tried rockplayer (ARM7) and I had sound but the sound was ahead of the video by a few seconds. It got worse the longer I watched.
Of the 3 tivo shows I converted, 2 out of the 3 had the same problem as the leverage shows. One was fine, but only in rockplayer. None of them I did this way worked in the standard movie player.
To further confuse the issue, I tried every other video player I could find on the marketplace. Most did the exact same thing as the default movie player (no sound) but ACT 1 was able to play them with the lagged video. Except for one leverage episode. It was able to play it just fine.
Since I'm on the road I don't have access to the original files but I used handbrake to take the Droid HQ2 mp4 files and encoded them using iPhone default settings. The ones I converted work in rockplayer and ACT 1 just fine (default movie player won't see the m4v files).
I tried to use DVD Catalyst to convert the same files do Droid HQ or Droid format and those had the same sound issues.