Step 1: Work backward from the options instead of solving the quadratic fresh.
Since the seats are arranged in a square pattern first, rows equal to seats per row, the original total must be a perfect square. Among the options, $1600 = 40^2$ stands out as a clean perfect square, so let us test it.
Step 2: Set up the trial with x = 40 rows.
If there were originally $x = 40$ rows and 40 seats per row, the new arrangement has $2x = 80$ rows and $x - 16 = 24$ seats per row.
Step 3: Check the new total against the condition.
New total seats $= 80 \times 24 = 1920$. Original total $= 40 \times 40 = 1600$. The increase is \[ 1920 - 1600 = 320 \] which matches exactly what the question states.
Step 4: Confirm the answer.
Since the trial with 1600 satisfies every condition in the problem, this must be the original number of seats.
\[ \boxed{1600} \]