Dziobas Rar Player is a MPlayer based movie player which can let you watch compressed movies or movies which are zipped so you watch them without extracting them. Why not extract ? They take a lot of time and bit of more space.
It can Play dvd, mvk, avi, mpge, ogg, rar(forward), password rar (no forward) and supports subtitles. It can also generate thumbnails of the movie. Download from here