1. WS movies will show widescreen unless you change the settings. The newest version of FairUse has a 4/3 option that will crop the video to fill the screen. You can look
HERE at post #20 for some screen shots I took of what it will look like.
2. When you choose subtitles in fair use you also have to check the box that says "Show Forced Subtitles Only". This way you will only get the ones that were ment to be in the movie. Say if two guys are speaking german for a couple of minutes it will show them as they were ment to be in the movie.
3. 700MB is way to big in my opinion. It will look great, but do you really need that kind of quality for viewing on your Axim. I use a rule of thumb of 100MB per 30 minutes of video and change the audio to 96. Everything still looks and sounds great and I can fit 2-3 movies on my 1GB card. So a two hour movie will be around 400MB. By lowering the audio to 96 this leaves more of your "400MB" for video and helps it look a little better.
If you have not seen it there is a great walkthrough
HERE. It was made before the 4/3 thing was an option, but you can check they out on your own. Good Luck~