If you need to encode video for any reason - the new Handbrake is basically idiot-proof (certified/tested). This’ll get you started, adjust as necessary:
Start with the Basic HD profile - you can delete everything else - all crap. Then do this, exactly, make a 240 second ‘Preview’ and see what you think. File Sizes will be consistent at about 1.4G per hour. My eyeballs stop seeing improvement above about 3250kbps, so I give it 3750 and call it a day. Your eyeballs may require something different. Make a 4 minute preview and decide for yourself.
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Of course, you should create an audio track that will Direct Play.…