Your comments

Downloaded the new version. Videos from the iPhone 4S transfer to the iPad 2 at 1280 x 720, instead of 640 x 360, which is an improvement. I would still like an alert for the non-tech savvy that the original file is being scaled down from 1920 x 1080, and an option to proceed or cancel. Still would love to see the option to transfer at full resolution with a warning that the file may not play on the target device.

iOS 6.1.3
Latest update, available today still transferring videos to iPad2 at 640x360, even set to highest quality.
Thanks to the Ferengi above.

In my case the videos were transferred below 720p resolution. They were 640x360!
To make it worse, I was on vacation and was transferring to clear space on the phone, which had filled up. The originals were deleted. I did not need to view the videos on the iPad 2, I was simply using it for temporary storage.

Nowhere in the documentation does it clearly indicate this will happen. In fact, it seems employees of Photo Transfer App aren't clear about it.

I would suggest updating documentation to make this limitation known. In addition, if possible, it would be better to give the user a choice..Downscale to 720p or transfer as is, with the warning that the video is in an unsupported resolution on the device and may not play.