Hi there,
I have just figured this out myself thanks to the guys here
Yes, you can add movies
All you need to do is make sure they are in the right format (I just use MPG4 and use videora which is a free download to convert any avi or divx files) and then drag them into one of your folders when you sync the phone with the computer. I just put my film in with my music but I am sure you can create a Videos folder and keep them together. Once you have moved it to a folder, disconnect the phone from your PC and go to 'albums' and it should automatically detect your videos and you will see the option 'all videos'. Click on this, select your film and away you go!