Although resolume plays mpg and mov files, for the best playback result of movies you should use the avi file format encoded with the Cinepak, Indeo or
MJPEG
codec.
The resolution of the files that you can use depends on the speed of your computer, on the number of layers you mostly use, the number of effects, etc etc. We would recommend that you first try it at 320x240 or 400x300 and if that is running smooth try it at 640x480.