What is the difference between "Videos" and "Movies"?

The "Movies" mode is only for playing back DVD/VCD discs just like a regular stand-alone DVD player.
In the "Videos" mode, you can playback video files (mpg, mpe, mpv, avi, asf, asx, mpeg, div, divx, wm, wmv, m1v, m2v, m1s and vro) stored on your hard drive.

Note: The bundled versions may not support the full functions listed above.