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I agree with AxBob. As for settings there is a trade off between the bit rate and the file size.
I use about 540 kbps - Video Quality set to 33 or 34 and Audio Quality set to 6 - 96kbps stereo. This gives about a 750MB file for a two and a half hour movie and gives excellent picture quality - probably as good as the VGA screen can display.
I always use two pass encoding which gives much better quality but, of course, take twice as long to encode. I also use 15 frames per second which, rather surprisingly, causes no flicker but which reducer the loading on the processor and so gives smoother running and better battery life.
But I suggest that you experiment and find the settings which suit you personally.
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mAXIMum Addiction
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