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Another way to watch movies on iPhone: put them on your .mac homepage.
There is a size limit to which .mov Quicktime movies will load in Safari via .mac (no more than 20 Mb), but not if they are in the .m4v format.
I was able to upload full movies on my homepage in the .m4v format (the largest was 700 Mb) and they play instantly and perfectly on iPhone.
However, for the .mac homepage to import them, they have to be renamed .mov (or the homepage won't see them). Safari on the computer won't play them, but just go to that link on the iPhone and they'll stream without a hiccup (at least on wifi).
I use the software "Transmit" to upload them on my iDisk, as the Finder will not handle the transfer of such a large file.