YXFlash player is out for iPhone and released in our repository. This marks the first actually usable xvid / divx player for the iPhone. Finally you can watch that collection of avi files you have laying around without having to convert them into Apple’s annoying format first. While the converted videos do play a bit smoother due to hardware acceleration, but xvid videos are watchable, at least the ones I tested.The player also plays flash content if you have downloaded flash flv videos to your device. (It is not a web based flash player).
In order to add the videos, just SCP them onto your device or use something like iPhone Browser. Yes, the app is free.
Edit: I guess I messed up the sync and it didnt go into Cydia. Adding it now. Also, yes it does have landscape mode. Just double tap the video. There are paid features but the xvid was totally free.