HandHeld Entertainment and DivXNetworks, Inc. today announced a licensing agreement to integrate the DivX® video decoder with HandHeld's $99 ZVUE personal video player, which will allow playback of DivX and MPEG-4 compatible files on the ZVUE.

The ZVUE! will be supposedly the first DivX Certified handheld product on the market. DivX, often called the "MP3 of video," is among the most popular video technologies in the world with over 120 million users.
HandHeld Entertainment will sell its "ZFlicks" DivX upgrade package for $69. ZFlicks includes the MPEG-4 firmware upgrade for the ZVUE, DivX video encoding software, a USB cable and an SD card. ZFlicks will be available at zvue.com.

So to have a useful ZVUE you need the ZFlicks upgrade which brings the player to $168, still very affordable compared to other MP4 Players.