Okay I bought myself a nerd watch. I've been checking out these "MP4" watches (as well as watch phones) for a while as well as comparing the compression utilities and came to my own independent conclusion that Sigmatel chipset players (SMV format) are probably the superior choice but I caught such a good deal on an MTV format watch that I couldn't resist.
So I've been playing around with compressing these MTV files down to as small as I possibly can and I discovered something interesting. The "MP3 Player Utilities" in your files section, version 3.x-5.x produce large MTV files (~10Mbpm) that are viewable in normal PC video players like VLC.
There is a different distinct type of MTV file being produced by another utility called "MTV Video Converter" which has version numbers 1.x The most recent version I've been able to locate is v1.12.11 and this utility produces much smaller files, ~1.2Mbpm but they aren't viewable with VLC at all. v1.11's files played but showed no video and had overspeed audio. Is anyone familiar with this alternate MTV file format? I read a post from someone with a Coby brand MP4 player who I think was trying to find this utility instead of the v3+ utilities offered here. I'm going to try to play these smaller MTV files on my watch when it arrives next week and will add my results to this thread. In the mean time, I encourage other people with MTV format video devices to give this utility a try since the files are only a fraction of the size of other MTV files. Perhaps it should also be available in the downloads section.
Or download from MyMPxPlayer.org --> MTV Video Converter 1.12.11