Correctly adding movies to a Nexus 7 I recently got a Nexus 7 (this year's model), and I can't seem to be able to add movies to it properly. I dragged a bunch of directories, each containing a video file and a subs file to the Movies directory in /sdcard, but they aren't recognized properly by the default movie player (Google Play Movies). Instead, they show up in the gallery. The formats are either mp4 or mkv (x264 with ac3 or aac).

Where should the files go so they don't show up in the gallery and do show up in the movie player?
You may need to install an app to play these movies. As mentioned by eldarerathis, the Play Movies app doesn't play local content, only shows/films downloaded via Google Play.

MX Player, VLC and MoboPlayer are popular media playing apps. Personally I use MX Player.