Not only does it play DVDs flawlessly (it is a DVD player after all), but it also plays DivX, Xvid, and MPEG4 files burned on to either a CD-R or DVD-R. This means I can download just about any video file from the Internet and play it in my DVD player on my big screen. The quality is excellent, and all the features (fast forward, rewind, skip) work just as well on a a file as they do while watching a DVD. After a file is played it automatically loads the next file alphabetically. The player also plays MP3s burned on a disc. You can play music in sequential order, or random. It support folders as well!
The drive seek time is fast, and menus are very responsive. I haven't noticed a layer switch yet, but I may not be looking hard enough. It has all the features you'd expect of a standard DVD player and more. If you're looking for a decent DVD player with some extra bells and whistles you cannot go wrong with the SD-K760.
My only complaints are that the remote is kind of cheap, and it does not have optical audio out. Nothing serious though for a $50 DVD player.