I did use 720x1280, so it is the correct size (the image have been been reszied for the forum)
Is there a certain way the mage should be saved (Index, RGB etc?)
Usually when you have your line length or resolution wrong; resulting in a double image, your image will be squished. But if your pixel format is not correct, you can wind up with a double image like you have, that is not skewed.
I think that your device is reading this as a rgb0 pixel format image, with rgb565 pixel format data (that you have given it). The difference in the two formats is- rgb0 is a 4 byte per pixel format whereas rgb565 is a 2 byte per pixel format. Hence the double image.
Using ffmpeg, you can simulate this. This just takes your initlogo png file and turns it into a raw file with pixel format rgb565. Then reads that file created as if it was in the pixel format rgb0. I did have to alter the resolution so ffmpeg wouldn't complain about the buffersize. I attached the image of the resulting png.
Code:
FFMPEG -i initlogo.png -f rawvideo -vcodec rawvideo -pix_fmt rgb565 -y initlogo_rgb565.raw
FFMPEG -f rawvideo -vcodec rawvideo -pix_fmt rgb0 -s 720x640 -i initlogo_rgb565.raw -y initlogo_rgb565_read_as_rgb0.png
You may also have an issue with your rle conversion also.
(The reason for the double image that is squished when you have your resolution jacked sideways is very different than your problem. That happens when once a line is drawn for the image, it doesn't go to the next line down and draw the next. It will draw it beside the previous line, then go down. So in essence lines 1 and 2 will be drawn side by side on line 1, then lines 3 and 4 will be drawn on line 2....squished and doubled)