Absolutely! It's my favorite feature about my Axim (300)..in fact, here's a post I had put on another forum that may help ya....good luck!:
I know all the converting and everything will seem like a pain, but it's worth it to watch movies on your Axim. In fact, I have the 300Mhz and I watch full DVD movies without a hitch or sputter. The other night I velcroed my Axim sideways to my steering wheel, plugged in headphones and watched Monsters, Inc. (DVD-rip) in its entirety during my 3½ hour drive. But here's the best guide to use:
PocketMatrix DivX Conversion for Pocket PC
Like I said, it's a pain, but it works. Good quality video ends up running you around 150MB for a 90-minute movie, which isn't bad. Try some of your clips using this and post back with your results...hope this helps!
-Laz
PS I'm making CD archives of my converted Pocket PC movies so I can have a library to choose from when going on trips...this is the thing I love the most about my Axim!