A little more information:

First of all, I have an n800.
I'm running Media Converter 1.43 on Linux.

Also, upon further digging, I suspect Media Converter is not finding or reading the resolutions.txt file, since the resolutions in the drop down window don't match the resolutions in the file. On my machine, they are in the same folder as each other - I unzipped the archive and ran the jar file from a folder on my desktop.

I can get pretty much any other combination of settings working other than the MPLayer optimized. The audio and video sync seem fairly close - not sure why they aren't exact. They work better in MPlayer than in Canola for me. Canola works ok until I try to play full screen, then the audio is way out of sync.

Thanks!