Wired’s Charlie Sorrel has posted a hands-on review of VLC for iPad:
There are a few other iPad apps that will play AVI and DIVX files, among other formats, but VLC plays files that the others wouldn’t even open. And so far it appears not to drain the battery significantly more than the iPad’s hardware-assisted video-player (VLC uses software decoders for much of its work). I’m 15 minutes into Truffaut’s 400 Blows and the battery is still at 100%.
Besides a few performance and compatibility issues this may finally remove my need to convert all my videos into “iPad” format.