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Kaizar said:
The Green Hornet in 3D for 540p is something like 854 MB, so a 3D movie at 240p should be less then 500 MB per 3-D movie.

540p has (for 16:9 resolution) about 520k pixels. 240p has (for a 5:3 resolution that the 3DS's upper screen has) about 96k pixels. Even if we assume that audio takes up a huge 100 MB, and is in no way compressed relative to the original, you'd expect the result to be about 240 MB, not 500 MB.