The Dollars5 mediaPlayer will play only the formats as supported by the device (same formats that are playable in bundled media player) - so no extra formats support as of now.

Unfortunately RIM has to take multiple licenses which are worth millions to support more media formats - hence there a limitation on supported formats and as a developer we have to use only RIM's API to do anything on a blackberry and are restricted. Hopefully this scenario will change sooner. Not just RIM consider any platform the video have to be transcoded before you play them on mobiles. One more reason being the smaller display size forcing to transcode/resize media.