Download VLC media player for iOS from Downsoft works on the iPad, iPhone4 and 3GS!
VLC media player is a highly portable multimedia player supporting most audio and video formats (H.264, Ogg, DivX, MKV, TS, MPEG-2, mp3, MPEG-4, aac, …) from files, physical media (DVDs, VCD, Audio-CD), TV capture cards and many network streaming protocols.
It can also convert media files, transcode and act as a streaming server over unicast or multicast and IPv4 or IPv6. It doesn’t need any external codec, program or codec pack to work.
Latest release of VLC,  after more than 51 million downloads of VLC this version is specially aimed towards Windows and Mac platforms, and brings various fixes, speed improvements and translations updates.

Introduction

VLC for iOS is a bit different from the classic VLC.
It is based on libVLC, libVLCcore and all libVLC plugins, like the normal VLC.
However, the interface works in a slightly different way, that is more suited to this OS.

Devices and version

So far, it works on the iPad, iPhone4 and 3GS only.
Full Feature List

• VLC can play the video content of some damaged, incomplete or unfinished videos (like downloads) before the files have been fully downloaded. (For example, files still downloading via BitTorrent, eMule, or Gnutella). It also plays m2t MPEG transport streams (.TS) files while they are still being digitized from an HDV camera via a FireWire cable, making it possible to monitor the video as it is being played. This is because it is a packet-based player.
• The player also has the ability to use libcdio to access .iso files so that the user can play files on a disk image, even if the user’s operating system does not have the capability of working directly with .iso images.
• VLC supports all audio and video formats and all file formats supported by libavcodec and libavformat. This means that VLC can play back H.264 or MPEG-4 video as well as support FLV or MXF file formats “out of the box” using FFmpeg’s libraries. Alternatively, VLC has modules for codecs that are not based on FFmpeg’s libraries. This feature is not unique to VLC, as any player using the FFmpeg libraries, including MPlayer and xine-lib-based players, should be able to play those formats without the need for external codecs.
• VLC is one of the free software and open source DVD players that ignores DVD region coding on RPC-1 firmware drives, making it a region-free player. However, it does not do the same on RPC-2 firmware drives.
• VLC media player has some filters that can distort, rotate, split, deinterlace, mirror videos, create display walls, or add a logo overlay. It can also produce video output as ASCII art.
• VLC media player can play high definition recordings of D-VHS tapes duplicated to a computer using CapDVHS.exe. This offers another way to archive all D-VHS tapes with the DRM copy freely tag.
• Using a FireWire connection from cable boxes to computers, VLC can stream live, unencrypted content to a monitor or HDTV.
• VLC media player can display the playing video as the desktop wallpaper, like Windows DreamScene, by using DirectX (only available on Windows Operating Systems).
• VLC media player can do screencasts and record the desktop.
• On Microsoft Windows, VLC also supports the Direct Media Object (DMO) framework and can therefore make use of some third-party DLLs.
• On most platforms, VLC can tune in to and view DVB-C, DVB-T and DVB-S channels. On Mac OS X the separate EyeTV plugin is required, on Windows it requires the card’s BDA Drivers.
• VLC can be installed and run directly from a flash or other external drive.
• VLC can be extended through scripting. It uses the Lua scripting language.
• VLC can play videos in the AVCHD format, a highly compressed format used in recent HD camcorders.