I loaded up a movie I ripped from DVD, and tried to play it using several media players. It was encoded at 716x476 using the H.264/AVC codec in the m4v container (MPEG-4).
Meridian Player flagged it as "Unplayable - Too Big Screen Size", then played the audio with no video.
Act 1, BluMedia Media Player, and the default player all played the audio with no video.
Has anybody actually gotten a full 720x480 movie to play?
I've seen it in a couple of places that the Droid supports full DVD resolution, is this right?