I have spent whole year trying to figure out which video format (through USB/SD Card) works for my City 17 model. And a few days back, I tried to run a DVD and it worked fine without any problem. So I noted down all parameters, bit rate, encapsulation, video format etc., and converted my videos into the format of videos my dvd had. And WHOA!!! It worked...
I didn't note down those video parameters but you can try a CD/DVD. I am pretty much sure that any DVD will work. If you don't have, go to local market, park your car outside the DVD shop and purchase a CD/DVD of your choice. See if it works. If it doesn't, change it. Repeat until you find a suitable Disk.
Use any media converter to convert your videos into your desired format.
If you face any difficulty even after following all above, post back and we'll try to sort it out.