Sprite animation pixelation in Android Tablet

I have the need to display very short video clips (without sound) in my tablet only app. The video’s are about 1-3 seconds and it’s sign-language so I need it embedded in the app and not in the full screen player.  After some research i discovered that android would force video to play in the full screen player (assume this is right?).  As a work around I generate sprite sheets for my video and played them using these image files.  This works great on the simulator but when building to android it’s pixelated. 

I assume this is because of a texture memory issue because i see it’s reccommended that they dont exceed 2048x2048?  If i can shrink my video a little and get my clip to fit within that size, should it clear up the android pixelation issue?  Should i stack my sprites in a vertically equivalent image to 2048x2048 or in a box pattern that is 2048x2048?  What about for retina do i need double sized spritesheets and will that screw up the texture memory?

Also open to other ideas or work arounds.

Thanks