a. The Flash Player plug-in to all browsers looks for a SWF file – it won’t play flv (video files) directly.
The SWF of our concern is the video player which points to the flv to play. This is true even if the video player is without controls and simply autostarts playing when the page loads. Actually, there’s a third file, written by Adobe – it’s a javascript that checks for Flash 8 and above and sends the viewer a link to get it and scripting to keep Internet Explorer from freaking out at the ‘action script.’
b. I set encoding at around 400 for dsl and above with maximun quality. I let Vegas do the scaling to fit a custom player I designed and then tell On2 to use same size and frame rate as source. On2 gives you a bunch of players to choose from – you’ll want to scale to fit those or let On2 scale if you render full frame as AVI or MOV files.
In Vegas, I find it best to add sharpening, contrast, and a bit of saturation for the best looking web video.