I'm having a little trouble understanding your post, especially the wording on the first question, but I'll try:
I'm eagerly awaiting VLC to be released since I don't want to convert my videos either. Of course, it depends upon which format your videos are currently in. If they're .mp4 or something, most media players will play them. If it's .avi, like most of mine are, I use yxplayer (though the full version costs $10, which is why I haven't shelled out for it yet).
Where you store the videos only matters based off the video player you're trying to watch them with. I have some of my videos on internal memory and some on the sdcard (simply in /sdcard/Videos). yxplayer allows me to navigate to either of these locations to play my videos.
If you're looking to simply navigate your file system, ASTRO is the best program for that I've found. It's go a great interface, allows copy/pasting, moving, etc. The only thing I've found it to lack is that when I click a video, it doesn't give me the option to play it with yxplayer, but rather suggests other media apps I have installed (doubleTwist, native Video player, etc.) even if they don't support .avi files. There's probably a way to change that, but I haven't figured it out yet.
Hope that helps!