Yup, thanks tadad1, I tried it out, and 128*128 works, if I fiddle around with the quality settings. And it works fine with 4.03, too, I didn't have to get the older version.
However, there is an issue with long videos - about after 7 minutes of play time, it errors out, saying 'format error'. Dunno why :-|
Any suggestions?
Thanks, all!
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