i was having same problem playing video on the ace,, i found a work around that might help anyone trying to import movies etc, the res of the ace is 480/320, so i compressed my movies for this format, specifically i used free software called handbrake for mac, (also free on windows i believ, but be sure to get the appropriate one for you in regards of 32/64 bit versions, if in doubt get the dual 32/64 one)
so for example, to import a dvd to your ace, use handbrake to rip file to desktop, using universal preset on handbrake, then if needed re-use handbrake to crop movie widescreen a little, (helpful if movie is ultra widescreen to make movie fill ace screen a little more)
next, re-use handbrake to make copy for phone,, use the preset for iphone/ipod touch, this will automatically give you a 480 wide resolution, and finally, movies are a little quite using phones own player,, so i installed qqplayer which is a bit louder
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