If you try to play those 1080p, 720p mkv files directly in your Xoom, you'll find it very jerky and seeking/skipping takes forever. That's because Xoom only supports base line profile of H264, in order to play those files smoothly, you need to reencode them.
I dont want to install handbrake so what I use is:
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ffmpeg -i /path/to/file.mkv -threads 4 -vcodec libx264 -x264opts ref=3:bframes=0:subq=6:mixed-refs=0:weightb=0:8x8dct=0:trellis=0:cabac=0:weightp=0 -acodec libfaac -ab 128k -ac 2 -ar 48000 -crf 24 -f mp4 outfile.mp4
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