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Here is a tip for the ones encoding in Vdub or pocketDivx Encoder:
Instead of AVI choose OGM with ogg audio. This will make a much smaller file with VBR audio.
And I use the following settings on my SMT 5600 with great results:
PocketDivx Encoder/VirtualDub:
Video: Divx 165kbps or Xvid (same results), 20fps, double pass
Audio: ogg, 48kbps 44khz stereo (to choose custom audio settings in PD Encoder you have to touch a small unoticiable arrow besides the audio quality slider).
Windows Media Encoder:
Video: WM 9 VBR 130 or 145 kbps depending on the movie, 20fps
Audio: WM 9 VBR 48kbps
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