M115HD, Can't read MP4 1080p from USB, SD, Internal memory

I am trying to load videos onto a M115HD so I can present without a computer. 

Problem 1 - The manual says it should read MP4 1080p videos but I can't seem to make that work.  Has anyone ever gotten theirs to read 1080 files?

Problem 2 - I convert my 1080p to 720p and from the USB stick they work great.  However, when I load them onto an sd card they skip almost like it can't read fast enough.  Does the same exact thing when I load them to internal memory.  Has anyone ever gotten vids to read from sd card or internal memory?  Need to know what to convert the vids to so this will work. 

Thanks so much.