[n_saneone]

160*120 is not a given option. However, I learned how to make this change in AMV converter, and the same sort of thing works here. Just open up the folder located at C:\Program Files\WinAVI MP4 Converter. Then, open up MTV in there which is a DAT file with notepad.
Replace the appropriate lines of code with:

DEF1 = g_VideoSize[2]={"160 * 120","128 * 96"}

and

STR6={MMAVE_SID_DROPBOX_S,150, 10, 1, 80, 20, "VideoSize",160 * 120,2,g_VideoSize}

Then save the file, open up WinAVI and you should have the 160*120 option and it WILL convert to 160*120

Hope this helps some of you out.