I was assume yes. I have last years model (SV421XVT) with has one USB input which I have used 2 flash drives (8GB and 16GB) and I tried avi files but they do not work. The cheapest option is to convert avi files to MPEG-4 with a converter like Xilisoft Ulitimate Video Converter. The problem is it takes 30 minutes for a 2 hour movie. But if you are getting the movie for free, it may be worth it. The quality is much better than DVD, especially at the higher definition formats. Pictures and Audio tracks can also be played on the Visio. The interface is pretty much vanilla, and they could improve a lot. One would be to increase the rate at which you can fast forward. Right now at the 32X rate, you only get a 4 to 1 fast forward, where if you stopped a movie by accident, you have to fast forward to the point you were and that can take a while at that rate... Unless they put a browser on the Vizio 42 inch with wireless internet, I don't see its use, you would still have to pay for those services. WD sells a machine that basically acts as a remote hard disk for your PC, I just haven't gone down that road yet.