Recording with Reflector app

We are currently working on a project in which we need to create demo tutorials for an Ipad app. We are using Reflector app to mirror the activities of an Ipad on to the desktop. We are using Captivate 6 to record the actions being mirrored on to the desktop.  The Reflector app mirrors the application along with the Ipad frame. To avoid the frame, we have manually adjusted the recording frame size to 830*539 to fit the application area. After publishing it in MP4 format for ipad, the output appears pixelated when the file is run using any media player.

The ideal resolution for an Ipad is 1024*768, however, setting the recording frame to these dimensions surpasses the size of the ipad being mirrored on the desktop. What would be the appropriate recording dimensions for recording the demos such that there is no pixellation/distortion while playing the video on any device including desktops, mobile devices and iOS devices?