Another relevant point is that 160x120 is probably not the maximum resolution of your screen if it is 1.8". I only discovered this about my player when I tried the file conversion tool mpxconverter from
http://www.bytessence.com/bmpxc.html. According to their resolution menu, the resolution of 1.8" displays is either 176x144 or 192x160, (lower resolution videos are displayed with borders or stretched). With my 1.8" screen 192x160 fills the screen perfectly, but 160x120 does not.