Well, The V-mate uses MPEG-4(PSP), MPEG-4(ISO), 3GP, and 3G2. I am currently using the MPEG-4(ISO) settings. I plays back on my q with descent results. I've been messing around with different settings to see which ones work the best. I'm using a 1Gb card and for some reason when I record a movie it will stop about 35 minutes into the movie and it only has about 260mb of movie stored...not sure why it's stopping!
So far I think that the V-mate is a cool gadget...I haven't quite figured everything out yet...a work in progress. I haven't tried the TCPMP player yet...I will have to look into it. The V-mate is $129 and comes with everything you need...and from what I've seen a whole movie around 2 hours or so is around 500 or so MB.