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routsounmanman said:
Play-Yan is extra hardware, thus it may include a Decoder...

 OK than let me put it this way my T-mobile MDA can play back MPEG4(H264) at the screens resolution without a hitch. So yeah the DS can playback MPEG4 no problem wether it is able to decode MPEG4 physically is another question but the power of the DS is not the limiting factor.