Recently, an independent iPhone developer referred to as "Zodttd" announcement that he/she/they have successfully ported the open source VLC multi-format media utility to the iPhone and iPod touch. The program, known as "vlc4iphone", currently features
a few decoders, although more will be added as time goes by.

With VLC, users can drag and drop media files onto the iPhone and play them on the handset. Included formats include MPEG, MPG, AVI, MP3 as well as less common ones.

The developer has added that he hopes to include support for the FLAC, OGG, VCD, DivX, WMA and WMV formats. VLC for iPhone has recently entered the beta stages with the software being released to a group of testers. A public release is expected soon.

If you have a favorite media utility of choice for the iPhone, let us know over in the comments or forums.
Via MacRumors