FYI - Nero Digital files will play on the Philips DVP3960 and DVP5982. It's not mentioned on the website or in the owners manual,but it does work.
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The old Philips DVP-642 would actually play them too with a little trickery, but the website that explained how to do this no longer exists. It's my understanding that AAC audio will NOT work at all, so if anyone wants to try this, they probably should avoid that. If you have actually gotten AAC audio to work on these players, it would be good to know.
Also, the video must be ASP encoded (MPEG 4 part 2), not AVC (MPEG 4 part 10, h.264).