Picked up an AV 700TV from Currys today for £181 (bargain) and really impressed with it.
Tried a few divx (avi) movies, some were fine, some had no audio. The ones with no audio I just ran through pocketdivxencoder and they're fine. It seems there are restrictions on the audio in a movie, something like AC3 not supported blah blah blah..but wasn't a major issue.
Problem is, I'm so impressed with it I now want the new 704 :D
I may play with this for a week or so then sell it to get a 704, but for now I am very impressed