Hi Reins,
We’ve been using Watchout at the Royal Ontario Museum for the year or so in a pair of installations. I’ll do my best to give some suggestions to your questions.
Have a look at the specs of the video card being used for each of your images-I’m guessing that there is 1 computer/screen. That will give you a good idea of what you have to play with. We do our editing w Final Cut and convert files using Flip4Mac to create WMV files. Our experience thus far shows that this is the best resolution with the smallest file size. It also allows us to work with custom sequence settings from start to finish.
I’ve taken some things for granted here. If your set-up differs from what I’m guessing, post a response and I’ll check it out!
Drew