Using terminal (su root) or SSH, you must go to the application directory (for iTouch 2G 3.0):
* cd /var/stash/Applications.pwn/mplayer.app
the default installation is missing e[x]ecute permission:
* mplayer -rw-r--r-- root admin 4432176 Jun 22 23:23
and enable execute :
*chmod a+x *
once i play a video.. you cannot hit exit or settings. you have to hit the home button to exit out. then hit mplayer one more time to stop the actual program from running in the background.