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How long is it? according to IMDB 2h15m - do I have the right film? I'm sure you should be able to get that within 240MB... set the settings like I said above and knock the video quality down 'til it goes below 240MB, give it a go. Obviously moving the video quality slider has much more of an effect on the file size than the audio one - because the video takes up more room.
Let us know how you get on :D
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