Thanks Dave.
I am indeed using 29.97 fps and not touching my keyframe value.
I had no idea 800kpbs was that extreme. The image size is 960 X 540 so I thought in order for the image to be clear I would have to use that high of kpbs rate. Actually, to be quite honest, I went up to 1200 kbps. Do you think it will help if I lower this rate?
Also, what does the keyframe setting really effect? Just curious if that might have anything to do with it.