Droid does have the same chipset, but:

1. Does not play vids above 640X480 (I have a bunch but could not find any that work).
2. Locks the device up sometimes if higher bitrate or res. I have never locked the G1 up trying to play the same videos- They did not play either, but would at least just play audio or not play at all- no lock ups- ever.
3. Lower res 4:3 vids scale to fill top and bottom of scrren, but wide screen vids do not.

Droid is surprisingly weak in playing mp4 unless you follow specific parameters- just like the G1.

My guess this is due to Androids strict framework. No way to improve it unless Android adds it.

Sad that the device plays vids not much better than the G1.