Use H264 Baseline Profile video encoding and put the video in mp4 container.
If you want a smaller file sizes, use lower video (and audio) bitrates during the video encoding.
It doesn't matter much which container you use: mp4 or 3gp.
What matters is how complex you make the video. Try to use Handbrake and follow the conversion guide in my signature. See how that plays.
Unfortunately, Wildfire S is using a weak CPU, so don't expect to play high resolution videos fluent on it. That means, you need to make videos with a simple parameters.
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