Yes, but in order to watch them, you need to prepare those videos first. You can do that with an application called Format Factory. It's basically a simple file converter with the possibility to customize the output format by configuring various settings.
Install the application, add your favorite movie into the software, select All to Avi then go into Properties and choose these settings for optimal compatibility:
- Video Encode: 400x240
- Fps: 24
- Aspect Ratio: 4:3
- Audio encode: PCM
- Sample Rate: 480000
- Bitrate(second one): 128
Please use these settings when converting. After the video has been converted, you can transfer it to the SDcard. You will need to copy the file into DCIM folder then you can watch it on your device.