hi kenny
i can't remember what my bullet cam is exactly, but it has the same resolution as a normal PAL TV (640 x 480 or whatever it is). as long as you view it on a tv, the quality is as good as it gets. but if you put it on a monitor that has a resolution that is higher than that and you scale it up, then of course you will get pixelation.
but you don't need a higher res. than that really, as the storage space needed for those uncompressed video files is pretty big - certainly too big to transmit over the 'net at the moment (hence why most 'net video's will be .mpg format or whatever where you have a loss of quality).
i also can't remember what lenses i got, but those numbers sound familiar. get a couple of different ones, as they aren't very expensive and you can experiment with what looks best (widest, or fastest or whatever).
i would also recomend getting several lens covers, as they tend to get stone chipped quite easily.