Sparker Wrote:and lastly, is there a way to compress my videos?
if so what would I need to use?

Almost all videos are compressed.  Uncompressed video is MASSIVE. (an uncompressed DVD movie is about 500GB)

Sparker Wrote:first, I want to be able to play full res videos and what would I go about doing so?

Get a converter to convert your videos.  Typically 3GP (modified INI) or XviD4PSP are used to convert em.

Sparker Wrote:I'm assuming only certain video formats are supported, what are these format and what are the benfits of each one?

Mainly two formats.  3.02 OE-B+'s MP4-AVC or PMP-AVC.
Basically the only advantages of MP4-AVC are easy access from the XMB (saves about 10 seconds not launching a homebrew) and usage of a more standard MP4 container.  PMP-AVC is far better in every other aspect - gives better battery life, allows volume/lumi boosting, supports more brightness levels, allows full use of AVC etc etc.