> I just re encode them to a smaller xvid avi format at high bit
> rate using a PC and transfer them to the Sam460ex via FTP. [...]
> The default playback quality using emotion video player on the
> Sam460ex is much nicer than on the basic PC setup.

You mean the higher-resolution video on the PC looks worse than the lower-resolution video (re-encoded from the higher-resolution one) on the Sam460? How does this make sense?