VLC is a popular open source media player for Windows, Linux, and Mac. It has become the default media player on my PC, because it has the ability to play almost every imaginable file format.
The team behind the player has decided to bring all that goodness over to Android. The App is scheduled to be released early 2011, and the team has stated it will only be a matter of weeks.
They have already moved over to the mobile space; an iOS player for the iPad was released back in September. They have been working on the player for months and have just about ironed out all of the issues.
Most VLC libraries have already been ported to Android. Still, Kempf cautioned that issues with specific devices could delay the release. Android's device fragmentation has been a long-running issue for developers especially in the multimedia space, and it's one of the reasons that there still isn't a Netflix app available for Android devices.
The progress of VLC's Android app can be tracked on the project's Git page.