Aside from turning the iPhone and iPod Touch into multi-platform game consoles, it looks like ZodTTD's set on giving them even more media support.

The developer has announced the release of ogg4iphone v0.7.0, a homebrew application that enables you to play OGG and MP3-formatted sound files on their phones. The MP3 support just came in with version 0.7.0, along with several other improvements (quoting ZodTTD's post):

• MP3 support added. ogg4iphone now plays MP3s in addition to OGG.
• Playlists added. Add music to two playlists available. This feature will be worked on much more.
• Stop music button added. Enjoy the silence.
• Random play added in the Settings.
• Volume increased 3x. Now you can hear the music too!
• Tons of bugs fixed.
  

ogg4iphone v0.7.0 is available for download over at ZodTTD's public repository. For the guys looking for expanded video compatibility on their phone, the developer is also announcing the release of vlc4iphone. As its name implies, this application is an iPhone/iPod Touch port of the VLC media player.

ZodTTD's port of this player will make use of ogg4iphone's front-end, so it shouldn't be too hard to use. At the moment, the application can play MPEG/MPG, AVI, MP3, FLAC, and OGG file formats. Future updates will add compatibility for VCD, DivX, WMA, and WMV.

It's still in the test phase, unfortunately, so you will have to wait until ZodTTD's Beta Testers manage to iron out the homebrew's bugs. Those interested in submitting their ideas on other formats to include for vlc4iphone will want to visit ZodTTD's site, via the source link below.