When a .flv URL is hyperlinked in a Page, the flv media filter displays it at 800x600 resolution in flowplayer. Since all-page persistent side blocks occupy 200+ pixels (width), 1024 pixel width screens limit viewing to only a fraction of the video width. Furthermore, low res FLVs look pixelated at 800x600 resolution.

As a temporary patch, I offer a very lightly modified and commented moodle/filter/mediaplugin/filter.php to produce default 480x360 playback.

Download:
http://mellin.org/files/filter.php.zip

In filter.php, searching for "Mellin" will jump to the modified area of the file, at which one can set the desired default resolution.
NOTE: This patch has inadvertently disabled initial splash image functionality.