Optimal resolution is 400x240 since it can utilize hardware pixel doubling to scale up to 800x480 and still keep perfect framerate.

For final encoding i use Media Converter :
http://mediaconverter.garage.maemo.o...Converter.html

The output is very impressive, so much so that i am in the process of converting my entire dvd collection to this format.

My process might not be as efficient as what you would want since i also produce a full scale version for archival (for playback on desktops). So for each movie i keep a full scale 720width xvid in addition to 400width xvid. Heres how i process this though :

I Use DvdDecrypter to rip into unencrypted vobs, enabling stream processing and checking the video and top (english probably 6channel) audio.

Then i use autogordian knot to encode into 80% quality xvid with 192kbs cbr mp3 audio (in advanced settings). This step is for desktop but this movie which is produced is next used as input to media converter.

Using Media Converter i convert the previous full scale video into 400x240 resolution with video bitrate 576 and audio bitrate of 96. I also am convinced you should always use the optimize for 770 full screen... cant afford significant black bars on a screen that small.

I'd say this produces great output at file sizes that allow me to fit around 12 full length movies on a 8 gb sd card.

Most of my full scale movies range from 1.2 gb to 2.5 gb and most of my smaller version movies range from 300-800 megs.

Not sure how well Media Converter works with vobs and im pretty sure it cant decrypt so you might need the middle step using auto gordian knot.

Probably takes me 2-3 hours to process a single video this way.

You should absolutely positively use mplayer to play back the video... the built in media player has trouble syncing audio with video in files of this size or format.

If you have (at least) a 1gig sd card you can use, you might go ahead and rip a couple of videos in this way to demo as soon as you get the n800.