Bad performance of video convertion from .avi to .mp4

I use QT Pro v7.0.3 to convert avi video to mp4. The mp4 quality is bad. I am unsure if mp4 movie is bad in quality or QT Pro is bad in convertion. As iPod selects to support mp4 video, the quality should be of an acceptable one, otherwise, it just damages iPod reputation. It is my first time to watch mp4 video but the impression is not to bother at all - worse than vCD. Is there any one using mp4 video? Any comments!
Thanks,
Ray

I set my QT avi to mp4 conversion to 2500 kbits/sec, current image size, current frame rate, and it's still worse than the original avi. FAR worse.
I've given up on encoding my avi's to play from my iPod. It just stinks, so I'm not sure what to tell ya... just that you are not alone in your observation. They look OK for play on the iPod, but playing from the iPod to anything else, like say a TV, it's not worth it. It seems to be better to just play the avi via some other means on the TV, because the conversion is seriously sub par.

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