oh yeah I recommend making your image bigger and adding a distant border so the characters remain somewhat close to the play area!
I thought 1980x1080 was the upper limit? Still not sure what the stuttering and rubberbanding is all about, though.
A 1920x1080 image will cover the whole screen with the default zoom but the image can be bigger and you can now zoom with the mouse scrollwheel and pan the view with middle click!