TouchViZ Manual
Media Format
TouchViZ can play any video that can be played back by the iPad's own media player and imposes no restrictions on resolution, bit- or frame-rate. Here's Apple's recommendations for encoding settings (2011):
H.264
File formats: .m4v, .mp4, and .mov
Video: Up to 768 kbits/sec, 320 x 240, 30 frames per second (fps), Baseline Profile up to Level 1.3.
MPEG-4
File formats: .m4v, .mp4, and .mov
Video: Up to 2.5 Mbits/sec, 480 x 480, 30 fps, Simple Profile.
TouchViZ is a very CPU and GPU intensive application, therefore it is advised to keep the resolution of your clips as low as possible to guarantee smooth performance.