if you play some video cpu usage will go down. try it .

I downloaded vlc and it works good. Instructions:

Go to Menu->Application Manager and, in the applications catalog, add VLC repository as follows:
- Catalog name: VLC
- Web address: http://download.videolan.org/pub/videolan/maemo
- Distribution: fremantle
- Components: free

After that, you can find vlc in the list of downloadable apps.

Install vlc-player_1.1.5-1

Copy all files here http://whoknowsmy.name/stuff/vlc/ in some folder on you phone and cd to it.
Then run xterminal with root and you have it

Works fine for me, but there is no icon for the application yet.