I'm making a flash movie with two video clips that will be played off a PC onto a 40" widescreen monitor.

How do I go about setting up the movie? Specifically what size (width pixel and height pixels) and frame rate should it be set at? I know it needs to be 16:9 ratio to fit.

For the two video clips, does the size/resolution matter? Which is preferred: a) HD 720, size 1280x720px or b) HD 1080, size 1920x1080px.