I dont have the device myself, but by using lots of different Android devices, I would think it wont read NTFS drivers. I have used some Honeycomb tablet that had modules and custom apps to mount NTFS drives.
I think the device should support EXT2 formatted card, but if you were using linux with that filesystem already you wouldn't ask this.
I use softwares like AviDemux to split the MKV file. Also is there actually any Android software that provides hardware acceleration for MKV files, otherwise I would think HD MKV files would struggle to play smoothly.