Buy cinexplayer...works a treat. U have to load the files into the app. Instructions on the web. I use it all the time
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"Watch your Xvid movies on the go from anywhere even if they’re in formats that don’t normally play or even sync with your iPad or iPad 2 today!....(mkv is not supported currently)"
Wow, you have to have to hand it to Apple's money making ability....first make a product with such rubbish video support that an add-on app is needed to make it useable, and then charge customers for it! And it still doesnt support MKV format