You will also be able to play movie files from an SD card inserted into the Wii, and future versions will let you play games from DVDs you have burned yourself.
According to the instructions, 'The DVDX installer instead will install a small, hidden, channel on your Wii that allows you to read DVDs on an unmodified system'. You won't need to have a mod chip inside the Wii for this to work. The folks at Hackmii have released an installer which will will let you play DVDs on your Wii, something which Nintendo's console should really do already.
