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Just got my nookcolor and I'm also trying to find something that works for video. I think the problem is the audio. I had a file I converted in Handbrake to an mp4 file (h.264 / aac), and it wouldn't play. When I reconverted the file, but stripped the aac audio off of it the video worked. Handbrake won't allow me to use mp3 audio when encoding to an mp4 file, and the NC won't read a mkv file. So I'll have to find something else to try the encoding with.
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