You did not state which version of the OS, assuming it is the stock one you might think about updating.

Whichever stock one you use the "play videos and mp3s" worked great for me. I am currently on 2007HE and have skype, etc. working. There are a few issues if you do go to the 2007HE OS and IMHO, if you are not into "learning/playing" with it and wish a usable non-problem "tool" then stay with the current stock version.

Word of warning, once you load ANY software it will effect everything as it is like "Windows" in that parts of the code previously loaded sometimes interferes with the running as when one uninstalls code is left behind.

RE-flashing does not seem to remove everything like a "new" install in windows does.

Good Luck and enjoy!