For video use the Handheld XviD profile in VirtualDub and encode at 25 fps, if you get slowdowns in the video try 20 fps, use Avisynth to convert the framerate otherwise you'll get "jumps" in the video due to framedrops. Try 320x240 resolution and increase it if you got black bars, on a 2.8 inch screen it might be 352x288.
Good luck!
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For my dreams i hold my life...
I miss my Meizu M6SL... Currently rocking a Sony Ericsson w595 on Samsung in-ear phones. Does fine, but it's not a chipod... 
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