PReddy,
The AMV format isn't the best in terms of quality. It doesn't stand a chance if you try to compare it against DivX or Xvid videos.
I've found the best way to get the bets quality is to RESIZE THE VIDEO BEFORE you convert it to .amv.
So, for 1.5" screens, try converting your original videos to 128 x 128 or 128 x 96 (depending on your player) BEFORE you convert it using the AMV Converter. I've found it improves the video quality than using the AMV Converter to convert the video as well as resize it.
Try that and let me know.
A firmware update WON'T improve the quality of the video as the format of the .amv videos hasn't changed and you are restricted to your 1.5" screen as well.
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