wow sounds like you have some pretty good idea's,
i would also like to see 1280x960 game size (not just because my mointer only supports that but because it seems a pretty common size) or maybe it should be done like otokoshi said and make it in a very high res and people who cant support the format would have to have scaled down settings, or if you have lots of time just make one for each res.
but if your gonna make the game 4xRes the videos would have to be 1280x896 (and so on),
Seifer is working on sharpened videos and i am working on smoother video's (i lose a little detail but i think the overall picture quality is still better then the original but this is my own opinion and NOT a fact) if anyone hasnt seen any of my videos yet i uploaded 3 of them here they also have PSX audio which is 44100Hz which i believe is higher then the PC's audio on the movies(also peoples opinions on them is welcome but please be contructive and dont just say they are bad please give a reason and maybe even idea's on how to make them better)
http://www.mediafire.com/?nc2i2f3oyk5 also they are in Xvid with MP3 audio, (in H264 they looked very slightly better but since that isnt supported yet, Xvid seems to do a pretty decent job but if anyone wants to sugest another codec that can do good quality and filesize and is support by aali's driver please let me know)