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a good resolution would be 1280 x 720, as this is a HD resolution.
TVs, Games consoles, etc

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It's much harder to remake a 2D 4:3 in a 16:9 ratio. You'd have to redesign all levels and backgrounds.
If remaking AO/AE, it'd actually make more sense to make cross platform (Think mobile phones, tablets) rather than higher resolution, as you can't really make the graphics better without the original models, and JAW are already making an HD version of the Abe games. It wouldn't be much different than running the original game with filters applied in real time.