@ebsebs - see that is a weird thing about this device, and that's why I think the software was way not ready - the controls do not work for me in the video files. I tried three video formats and all the buttons (including enter) and they just don't work in any way. On the other hand, my on-off buttons just works without fail, on all the formats I tried, if powers right off when I am in the book. There is also already a firmware update, but I think I am going to wait a bit, since it's not on their page yet, and instructions are a bit sketchy. And I don't have time really until maybe this weekend. Plus, I am going off for business and then for vacation, and don't want to risk bricking my travel companion at this time, so I will try to hold off, as it does most of what I want it to do right now. But maybe I'll just be unable to hold off, sometimes I'm just my own worst enemy. Anyhow, for the price I would still be able to replace it without too much pain, we'll see.
Firmware update link is included in this post on Augen forums:
http://augen.lefora.com/2010/07/09/e.../page2/#post34
I had no problem downloading, but won't be able to get a look at it today

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OK, I eventually was unable to hold off and installed the update. I had no problem installing, other than I had to go to my sewing box and get a needle to reset TB. Usually reset can be done with a pen... This one needs a needle.
So far for me the only thing that changed was that I can now pause the video with both the "enter" button on the keyboard, and by pressing the joystick. No forward or backward functionality in the video playback, as far as I can see, and I pressed all the buttons. I did not really notice anything else changing, but as stated above I don't go for DRM and don't plan on using a browser on it. Another video format i tried with no luck is .flv, which I had no high hopes for, as it is NOT divx, but well, never hurts to try.