Unlike most devices the Philips 3020 will only play videos that are converted using the software that came with it and it will only open wmv files. So these are the steps that you need to do to successfully to play video on the 3020:
1) convert video into wmv format using any wmv converter (unless it is already in wmv format). I use WinAVI video converter and it works perfectly.
2) after the file is converted then you need to open up the Philips media converter that came with your MP3 player and add the files that you just converted to wmv format and then hit convert. If you can't find it here is a link to the download http://www.p4c.philips.com/files/s/sa3020_37/sa3020_37_mcs_aen.zip
3) After the second conversion process then connect up your 3020 and drag and drop the files.
** The Philips media converter will only accepts files im wmv format so that is why the first conversion step is necessary. If you try to open any other format it will not respond.
Hope this helps!