Hi. I am confused as to what sensible resolution and bit rate settings to use in custom setup.

I save movies to a flash drive and then plug and play on a Panasonic 47" tv. Obviously I want the best picture possible but file size not to huge.

Thus far I have tried the 720p and higher setting resolution and in both cases reduced the bit rate to limit the file size.

Have not seen any loss of picture quality in either experiment. My question is does it make sense to use the top resolution setting with a reduction in bit rate or stick to 720p with a reduced bit rate also