Most of the .AVI's I convert are that size, but when played on the DROID they are full screen, crisp and amazing.I am using Handbrake to convert my videos, but I am not able to make the picture any wider than 640w x 272h. Is this because the original video is that size and you can't make it any larger than the original? If I use those settings, will I not be taking advantage of the Droid's screen?
Convert a video using those settings and put it on the device. It will blow you away.
Let me know how that works out for you!