Just installed Beta 4, and was able to use VLC Player to play an MP4 file. Funny thing though, the skin tones all appear bluish in color even though the same file plays great, with normal colors, in OSX or Boot Camp XP. Has this something to do with the emulated video card? I also wonder how come XP can boot up soooooooo fast. Takes twice the time to boot up under Boot Camp or my Windows machine. Incredible product.
I noticed that in beta 3 as well, so it wasn't introduced in b4 - but yes, it's kind of strange - and only in VLC (WMP / SlingPlayer show colors just fine). It makes everyone look like a vulcan David