I'm guessing this post is too late lol, but yeah, everyones pretty much already covered the basic stuff. I would just like to add that a lot of people get hung up on the Xvid/DivX stuff, but the Droid will play stuff thats formatted for the iPhone, so there's a LOT of content out there for it lol. Plus converting videos isnt really that big of an issue.
The software to be able to edit Word files is on sale for 15.00 right now too BTW if anyone here wants it but didnt want to pay full price