I tried again last night. Compared several methods, but came back to Sony AVC. The original one i did was 2.5mb/s. This time i used the default template, and 6mb/s bitrate, and set project to best. i checked something like use original frame rate. Still not perfect, but a nice mix of file size and quality. One odd thing was the original (DV-AVI) was slightly letterboxed and wider, while the render was no letterbox and a bit thinner. the original video was 640×480, DV captured at 720×480, and the template was 720×480.