Recently, the developers of CineXPlayer updated their app to be available on more devices. Before, CineXPlayer was only available on iPad but now you can use it on your iPhone 4 and iPod touch 4G. This app allows you to finally play your Xvid movies on your device, plus keep a library.
In CineXPlayer you are able to throw your videos into your library through sync. You can manage your videos, delete them, watch them or save them for later. So far, the app plays movie great, the quality is outstanding. I haven't found any flaws with it so far, but if for some reason it blows up my iPhone, I only lose $1.99....erm, plus an iPhone. I'm sure its safe.
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CineXPlayer = The best way to enjoy your Xvid movies for iPhone and iPod touch on the iTunes App Store