I was just told by an AT&T Tech support that BB Bold can only hold partial movies not a full length, is this true?

Not true.

A full length movie optimized for the BB will run from 90MB to 150MB, according to the length and quality of the optimization of the movie, of course.

You can place that in the 1GB system memory, or better yet, get a Media Card (8GB about $25).

Yeah, it can hold full movies... but unfortunately, it does not play those xVids widely found on the internet since it only partially supports that format :(

Hopefully someone will come up with a better player than the one supplied by RIM. I believe the hardware of the Bold is capable enough to handle xVid files. Well, my 8 years old iPaq, running on WM 2002 can play those files w/o problems!