Heya Win7Mac.

I use Xvid, .avi because it simply rocks.

Not even my first gen Xbox is able to run .mp4 files very well so I try to avoid that encoding all together.

I can fully rip a DVD, using DVD Shrink with no compression, and my Xbox can play this perfectly while it's being streamed from an external hard drive, to my computer, then finally to my Xbox.

When I actually put a 720P .mp4 YouTube video directly on my Xbox's hard drive, it won't even play.

I doubt I will ever understand how it's able to stream a 4 or 5 Gig movie, but not be able to play a 700 meg .mp4 one that's sitting right there on the hard drive.

With .avi, my Xbox can handle about a 2.3 Gig movie stream in this format.

Anyway, if I close every application and go into offline (flight) mode on the tablet, the width times height in pixels (example: 640x360) really can't be pushed any further than 23,000 total unless you want to chop down the frames per second, which I do with cartoons.

But if you think H.263, MPEG-4 is the way to go, I'll give this a try right now.

Thanks again for being so helpful on this.

Cheers buddy.