I read that MKV files are really high quality within a small file size. What's the file size of the movie you have? Where do you get your movies in MKV format? I use DVD Fab Platinum to convert my DVDs to MPEG4. I set the resolution to 720x404 and bump up the volume to 150%. File size for Avatar is just shy of 3GB. I copy a lot of movies for my wife's iTouch so that the kids can have something to watch while we're out & about. I use the same settings for my Fascinate and the picture quality & size is pretty much perfect.