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I personally do 475 megs and force 640 width. Since I generally rip the letterbox format of most movies (in the 2:00-2:30 range), that is plenty (up to 1mbit/sec or more). Even full-screen it's not that bad.
Just experiment with a short video a little to see what you can tolerate. Remember to do the cropping if you use the letterbox video.
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