i got a lg blu-ray player, to match my lg 42", so the remote works the tv too. (less remotes lying about-i'm a bit 4nal with things like that!).
the blu-ray player has most of the media player facilities(via hdd into usb port) and takes all my mkv's in its stride.
along with avi's, divx etc,
only cost £60 at the moment!
has a network connection on the back too..