It means your video app doesn't have the correct codecs to play that type of movie format. Since u haven't told us what type of app you're using it's difficult to make any suggestions other than to get an alternative one. For example VLC is free & will play most (not all) video formats incl dvd & vcd. Found here:
http://www.videolan.org/ Your 2nd Q. There's plenty about this on the internet if you search for it. One is
http://www.videohelp.com/ & another
here!