Have an iPhone 3GS and love it. I'm glad I held off on getting the iPad because I'm excited about the iPad 2. It seems that performance has been greatly increased and was wondering if this will translate into better VLC playback of media files. On my iPhone I can only watch .avi's that aren't too taxing. I'd be curious if the new iPad will be able to handle .mkv's and other hi-def videos well or if the 512MB of RAM will be the culprit.