Hi,
I use Quick time pro 7 very effectively for this purpose. I can tell you my setting which are in HD 720 p , but that should not matter to you.
Here is the work flow.
Open file
Command E
Export as movie to mp4
Click options
In video option –
Video format – H.264
Data rate- 9000 kb/sec
Image size 1280*720 (or whatever u prefer)
Frame Rate – Current
Hit save
And that’s it
Oh ya and I forgot u need to save the destination file.
Thank you hope it helps.
Cheers
Raj