Have you looked at the
GP2X instead? Have a look here:
http://www.gp2xwiz.com/
This is an Open Source game player and very similar to the P2P. I have one of these (an older model) and because it's open source, there are heaps of emulators for it, such as MAME, NeoGeo etc.....
It also plays proper DivX and Xvid movies, along with music and photos as well as outputs to TV!