The 'touch screen' feature in your player tells me it's most likely a Rockchip player that plays converted .AVI videos. To confirm this, look for a sample video on your player. Also can you post the firmware version of your player? You can find that by going into the "Setup" then "Version Info" part of the menu.
If it's a Rockchip player, then try using
ViDrop and convert it at
320 x 240.
One more thing, where and who did you buy the player from? I'm suspecious that it says "32GB" as well as "16G"?
Let us know.