There is a pretty good app called Meridian that is free and I got videos converted and playing awesomely!!! I used a program called Total video Converter and converted music videos to mpeg4 H.264 with custom screen size set at 854*480 with aspect ratio set to 16:9. Videos look flawless and work well with the app mentioned above. Also as stated in an earlier post all you do is just connect the phone to your pc and bring your notification tab down,select USB connected and select MOUNT and then just create a folder labeled Videos (same for Music) and your all set!!
Hopefully this works for you all!
Also as i just read above I'am using Windows 7 x64 bit. Everything works flawlessly with no lag during video playback!
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