What are the best third party compression utilities

What are the best (and hopefully free) third party compression utilities that are compatible with FCP7 that I can use to export and compress Quicktime reference movies, instead of using Compressor. My files are always very large and I am looking for an application I can use to customize the size of the final file according to my needs. I would like to do this while skipping the need to go through compressor first as this usually take so many hours to finish.
Thank you.

Thank you for the response. I didn't know MPEG STREAMCLIP can accept Ref QT files. I have that so I will try to use it in my workflow and see the results.

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What are the best export settings to use...

Operating system: Vista SP1
Camera: Canon HF100 (1900x1080 HD quality 29.97fps) -- uses AVCHD compression which is H.264 I believe.
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In the export settings window... I select:
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So what are the best export settings for me so that I can watch my edited HD video on my computer as easily as the source footage???
I've been able to edit and save the results of the edit using the crappy ImageMixer3 video editor that comes with the camera. The results are perfect and play in windows media fine. The files it exports the edited video as is the same as the soure... the file extension is .m2ts
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See
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