busta, Try installing a codec pack to start, I use the K-Lite Mega Codec pack as it covers about every video format available. You can download it here:
http://www.free-codecs.com/download_...hp?d=2736&s=42
After installing it reboot and try another conversion, be sure to select the "Try Other Codec" option on the settings window.
For a 1.5 inch LCD you should use MP3 Player Utilities 3.68 using 128x128 or 128x96 resolution.
http://www.mympxplayer.org/amv-conve...ads-df327.html
If you bought your player as a 4GB then you have a hacked memory chip as these players will only support a maximum 2GB Nand Flash memory. The chips true size could be anything from 128MB to 2GB.
Here are a couple of posts that will help you check and fix the problem.
http://www.mympxplayer.org/feedback-...rs-vt2828.html
http://www.mympxplayer.org/how-to-re...ck-vt2400.html