I just did some testing myself over lunch, and came up with some interesting stuff. All my tests were done with video on an SD card, NOT an iPod.
I had a bunch of files which were less than 640 Horizontal, and they all displayed at less than full-screen. Yuk. I tried encoding files at 640 H and 800 H, and they displayed, although the aspect ratios were messed up. A 4x3 aspect ratio video that was 640x480, stretched to fill the screen. This means the pixels aren't square, and are actually 1.33:1. (480 / 9 * 16 = 853, 853 / 640 = 1.33)
Since the screen is about 16x9 (800x480 is actually about 16x9.
, I took some widescreen videos and tried resizing and transcoding to H.264 using MPEG Streamclip (free, both Mac and Windows). My 16x9 videos looked about right -- at least close enough for my testing purposes.
I then took a 1280x544 Star Trek XI (w00t!) movie trailer off Apple's trailer site, which was actually a 2.35:1 aspect ratio. Figuring that the pixels on-screen were not square, I did the following conversion:
First, I halved both H & V resolutions:
1280 x 544 -> 640 x 272
Then, I stretched the V resolution only.
272 * 1.33 = 360
My final video was 640 x 360. It looked smooshed on my 1:1 pixel Mac monitor, but when played back on the F700bt, it looked spot on!
So, if you've got a widescreen video, at least 16x9, or 1.78:1, reduce both dimensions by the same ratio so it ends up horizontally at 640, but then scale the vertical resolution by 1.33 -- as long as it stays less than 480, the AVIC's max vertical res!
Now, data rates. Yuk. I started off at about 2.5Mbps video + 192Kbps audio, and the video stuttered horribly. I took it down to 1.5Mbps, still bad. Down to 800Kbps, and it was better, but it didn't take long for the audio to get out of synch. Even at 512Kbps, things got out of synch.
Any idea how slow you've got to go to keep this stuff in synch? Even at 512Kbps, things are starting to look pretty ugly for such a large screen. I've got a bunch of DVDs that I ripped with with HandBrake, but I'm not going to bother converting them to put them on an SD card if the audio won't stay in synch.
Oh, and the F700bt/900/90 have no surround decoder built in, so the only thing they will ever be able to playback is 2 channel stereo. Sorry.