Zodttd has announced that he successfully ported the VLC media player to the iPod Touch and iPhone. He has been trying for a while and finally cracked the code to make this possible.

VLC by is a popular multi-format video and audio player for a wide variety of systems. Within the past few days I have successfully ported over VLC to the Apple iPhone and iPod Touch. I have also built and used my ogg4iphone frontend for vlc4iphone.

What is vlc4iphone capable of? At the moment it may be limited by only a small handfull of decoders, but soon that list will grow! It currently allows you to drag and drop the following popular media formats onto your iPhone/iPod Touch for playback: MPEG / MPG,AVI,MP3.
It also supports some lesser known media formats.

Soon it will play: FLAC,OGG
I am also researching playback of: VCD,DivX,WMA,WMV

This will bring all kinds of video playback opportunity to the famed Touch device.

[Via MacRumors]