Thank's for taking the time to reply.
There's a hyperlink in the word "this" in the original post (here it is:
3.0 WQVGA 16:9 TFT-LCD 4GB MP4 Player LA2-4R - TinyDeal). Also, it's the color depth that's sub-par and not the resolution.
It might be a firmware problem but I can't access with any of the methods I've found on these forums. The chip is an Actions ATJ2255c and I can't find any information pertaining to it. The same goes with the board which is marked ZX-8113DE-TLSK V2.0 with the date 2010-8-13 on it.