Resolution & Error Message

Hi all,
Thought I would try Kodi on my desktop computer (Windows 7) to see how it works before jumping all the way in and setting it up on my TV so I can cancel my cable service. (No longer worth $200.oo a month).
Just got started and already have two issues to work out before I can move forward. The main one is resolution and the other is simple playback.
I installed the ABC Family addon and then chose the TV show (The Middle). I then clicked on an episode to watch. Error message: Playback failed – One or more items failed to play. Check the log for more information about this message. Also, at the bottom, right hand side of screen it says: Video not available at this time. Is this normal Kodi behavior , just because the videos are listed doesn’t mean you can actually watch all of them?
I then tried a show called (Shadow Hunters) not my thing, just experimenting. I got one of these episodes to play, but noticed the resolution was only 720. I was pretty sure that the show is broadcasted at a much higher res. I recorded an episode to my cable DVR and then transferred it to my computer…….most people don’t even know that this can be done. Anyway, I was right, the res is actually 1920 by 1080.
I went to System > Settings > Video output, but the only res that is shown there is my current monitor res setting. Are the videos on Kodi played at their original res or are they all downgraded to 720 for some reason? Is there a setting somewhere that I’m missing? Is there a way to tell Kodi to always just play at highest res possible?

Thanks guys