Thanks alot guys, I might try another MKV file on the component setting of the wii, see how that is.
Component vs. composite isn't going to make any difference as to what your Wii can handle (although the picture will look mildly better). I will tell you that videos played on the Wii tend to look better on a standard 480i television rather than on a high definition TV. It's a resolution thing.
QUOTE(FenrirWolf @ Feb 27 2010, 11:44 PM) Remember that MKV files are containers, not an actual format. If the video is encoded in XVID or something, it ought to work just fine. H.264, on the other hand, will stutter like mad.