Video resolution

[avgas100]

I'm re-encoding some videos I have here using Any DVD converter, and I was wondering what is the best resolution to encode this to. The touch specs list the screen's resolution at 240 x 320 pixel, but the camera records video at 176x144 (which is already a preset on AnyDVD). What video size do you guys recommend?

Also, is it mostly a personal preference between .mp4/.3GP/.avi or is there a best format for this device

Thanks