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Yeah, I'll say it does take a large chunk! In light of Andy's response about not maxing out the quality I will share what I normally do with encoding.
Basically for viewing at 720x??? (where ??? is determined by the aspect ratio) you should aim for about 600kbps 2 pass encoded.
At 640x??? you can proably go back to 500kbps and keep the same quality. Also reduce your audio quality to 96kbps or 128kbps stereo. There is no point having 6 channel audio on a Axim :)
At 320x??? you can proably go as low as 200kbps and still have good quality picture.
Have fun playing :)
Cheers
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Adrian
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