I only partially agree with the article. When i convert the files i keep the source resolution. Even my Evo 4G could playback .mp4's that where natively 1080p. And before you start the "its screen cant playback above a x b resolution...", think about this...u can output upto 1080p via MHL/HDMI or DLNA. Additionally if you convert them to the maximum of the Evo 3D screen, what are you gonna do next year when your next phones resolution is higher?
Second, while its true it will playback .mp4 or .m4v...use .mp4, as DLNA streaming wont see .m4v files (old ones can just be renamed to .mp4),
Also, avg bitrate can be fine for some movies, but especially in action movies, it tends to leave slower parts of the movie in poor quality imo. I usually use constant quality and play with the setting til i get about 1.5GB or lower files from 1080p Blu Ray.
The above has worked out well for both my Evo 4G and Evo 3D
Evo 4G LTE