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"Video playback using the included Windows Media Player 10 Mobile and
TCPMP were very good up to 700kbps with smooth playback."

So it should work.

It has a Samsung 400MHz Processor.  I don't know if that's an ARM or not.

Anyway, it likes you have a common problem according to:

http://forums.cingular.com/cng/board/message?board.id=cingular&message.id=24672
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I had the same problem after installing the latest TCPMP executable.
After some research I found that the 8525 is missing some codec files
to allow the viewing of MP4 files.

If you go HERE you will not only find the latest TCPMP executable but
you will also find the missing codec plugins files.
save the Windows Mobile ActiveSync - tcpmp.pocketpc.0.72rc1.exe file
to your desktop along with the
ac3.plugin.0.72RC1.zip and ffmpeg.plugin.0.72RC1.zip files.

ActiveSync your 8525 to your PC.