It's an mp4v video code, I guess the 720p bitrate isn't high enough. I know that the audio sampling rate is at 8khz which is why the sound is so poor (its using the default telephony AMR audio codec, which is pretty lame).
EDIT:
I just looked at the details for the 800x480 videos I shot today and they are at 2Mbps and they look pretty good. Haven't filmed in 720p yet.
EDIT pt 2:
Ok, in the gallery, if u long press the video thumbnail, u can see the videos' details. I noticed on my 800x480 videos shot today (they were in sunlight and relatively fast action) the details said the FPS varied from 28 to 29, which is higher than the EVO is suppose to be able to record. Also, I did a little test 720p video in very very low light just a minute ago and its details say its at 6Mbps but was only 9FPS. Seems that light plays a greater role in how the camera and software record than just a static setting. Oh, and I'm using a 16GB class 6 card.