LOL..dude no one is connecting bluray player/media player/pc to tv using usb cable..it's connected by hdmi cable only. Hard disk drive where media files(mkv/avi/mp4) are stored are connected to bluray player/media player/pc by usb cable...it's for reading the data only while hdmi is used to transmit that data decoded by bluray player/media player/pc to tv...so you will get highest quality always.
avi/mkv are not format these are called containers where you can store various format of video(avc,divx,xvid) and audio(aac,ac3,dts). Now quality depends upon the bitrate of video file/audio file, format use.
For best quality video avc/h.264 and for best sound quality dts are to choose. As mkv got best flexibility to contain various kind of format we should choose mkv.
Iomega should play mkv..which means there is some issue with that file which can be fixed easily.
avi/mkv are not format these are called containers where you can store various format of video(avc,divx,xvid) and audio(aac,ac3,dts). Now quality depends upon the bitrate of video file/audio file, format use.
For best quality video avc/h.264 and for best sound quality dts are to choose. As mkv got best flexibility to contain various kind of format we should choose mkv.
Iomega should play mkv..which means there is some issue with that file which can be fixed easily.