i would also like to state.
This is a 720p screen, and i have no issues playing 720p video. The screen will not display 1080p resolution, so 1080p video is worthless on the device.
They may work but they are down-scaled versions of 1080p, to 720p.
There is no purpose for 1080p video on this device. Also, the screen is too small to really notice the clarity of a 1080p resolution anyways at 7". 720p looks and plays wonderfully on this device!! 1080p video >.> if you have a codec, it will play at 720p. Dont waste yo space!!!