OK, let's clear few things up here.
The DXn-2 unit is capable of PIP (Picture In Picture) and you can configure on a template to have a source pn a frame. This means that you can have real time TV or DVD playing, or PC etc while distributing digital signage content on the rest of the screen. This is a very big advantage for MagicInfo pro screens and I use it all the time.
If you use IP TV, then these screens are also best suited to show this on a separate frame using mms cast. In fact I did evaluate both Exterity and CableTime TV that worked fine on my original DXn units with no problems at all. Both IPTV solutions use their own player (I think for Exterity is AVS media player), but I specifically asked for the Microsoft Media Player as I know the mms stream will be ideal. And it worked!
The DXn-2 units have HD resolution of 1920x1080 and this is the video resolution you need. But the display will do easily 1360x768 or 1366x768. The main issue here is the 16:9 aspect ratio. If you have this in your video, it will be perfect.
Bill