You’re limited by the resolution of your delivery platform.
DVD is designed for 720×480 playback at about 30 fps from a disc. As a result, compromises are made regarding image quality. Until HD-DVDs (and players) are available, the best way to squeeze quality out of a DVD is to make sure your source is high-quality (animation codec), then compress to MPEG-2 (it’s necessary) at the highest data rate your player will support. Post at the COW DVD forum for more info.
As for hard drive playback, you can try 640×480 Quicktime Photo-JPEG or Windows Media (WMV). You might be able to make a larger file, but you’re still limited by the speed of the playback device. The average hard drive can only spin and read so fast, so you should test various frame sizes and compression scehems (codecs) until you find something that your presentation hard drive can play back smoothly.
Heck, everything looks better (except talent!) at higher resolution, but as I said, compromises are still necessary due to the speed of the currently available playback devices. RAID arrays can play back HD full-frame, full-rate, but they are expensive. Medea offers a selection.
Anybody else?
Steve