Encoding Settings?

[zer0faults]

I am trying to encode some videos to put on my Imagio but having some difficulties. The player seems to run them very slowly with the bitrate at 1200, which from what I understand is still pretty low. I put the res at 800x480 since I read that was the Imagio's screen resolution. I am doing something wrong here? The device runs great until I load a video, the video takes forever to respond once loaded to commands, like hitting the volume rocker. If I can get back out of the video it often leaves the rest of the TF system messed up in some way. I don't want to shut off the TF since its one of the reasons I got the phone in the first place, should I encode lower, or use a different program to run video? Encoding to mp4 format if that helps using CuCuSoft Ultimate