I'd use the 100x100 virtual resolution, and the setscreenaspect command to ensure it fits correctly. Thats what I do in my 3 released games and it works fine. I also discovered that the iPhone resolution is a great midpoint between the various mobile resolutions and would suggest basing games on that. (Even though I hate iphones.
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So, when developing, set the setup.agc file to run a resolution of 480x320, with a virtual resolution of 100x100 and the setdeviceaspect command to fill the screen. The setup.agc file isn't used on the devices so your app will automatically run fullscreen, and scaled correctly.
My signature is NOT a moderator plaything! Stop changing it!