Some people are so passionate about porting open source apps to other devices or systems, this is always good for the community. Zodttd has ported the popular useful VLC media player to iPhone and iPod touch. This will work only on your jail broken devices.
This will make it possible to drag and drop MPEG/MPG, AVI and MP3 files on your iPhone or iPod touch. And this is not all, support for FLAC and OGG is coming soon and he is also researching to get playback for other formats like VCD, DivX, WMA, and WMV.
This is still in beta but stay tuned it will be released to public soon. Source & Image CreditGizmodo