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The N300 display is handled by a Nvidia GoForce 4000, a 3 year old graphical chip and unfortunately not fast enough to handle VGA videos with high frame. Movies can be watched at 30fps in CIF resolution (352 x 288), according to Nvidia. That would explain why the framerate drops when trying to manipulate 4 times more pixels...
As everyone have seen, QVGA videos are more... acceptable
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