I'm watching them from a USB drive (Micro SD card would work as well). Just load the movies onto the drive, insert it into your PE, go to Library/Storage, tap on the USB icon and your movie will show up. Tap it to play.
If you want to transfer it to the device's internal storage, long press the USB icon and and choose "Add to Library".
I'm using mp4's and 3gp's.
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