Best way to compress files?

I am converting my videos from tape and DVD to store on my Hard Drive. I will be playing them back on my TV and/or computer.
I am importing them into iMovie.
Any thoughts on best compression settings to export files that look good but don't take up massive amount of space? Video quality is more important to me than the space, though obviously I don't want to retain the full quality DV files.
I have already tried various combinations as QT files using High quality/Best quality settings. I noticed I am getting horizontal jaggy edges in some cases. I used the "sharpen" filter and the edges seemed to go away. Or was some other variable at work? Would de-interlace make a difference? Would a higher end editing program like FCP make a difference?
Just curious as to your thoughts. Thanks.

De-interlacing will get rid of the lines...
...took me years to figure that out...
you should have that option on most of the compression methods..
here's what i most commonly use...
Under Expert Settings:
Movie to Mpeg-4
...click on options...
File Format: Mp4
Video Format: H.264
Data Rate: 1500kbps (you can bump this up to 2000 if you want... beyond that there's not really a noticeable difference...)
Image Size: 640x480 VGA
(if you have a widescreen project then Preserve aspect ratio using: 'Letterbox' (give black lines at top and bottom) or 'Fit within Size')
Frame Rate: 30
Keyframe every 24 frames is fine.... for super high action, you can do a smaller number...
then hit ok, press save and then let it crunch through the numbers...
if you are having problems with lines in your video, you may want to use similar settings,
only save it as a quicktime movie... with mp4 or H.264 encoding... etc... and once you've chosen your settings, click the 'size' button underneath 'Video:' and select "De-interlace source video"
Good Luck!
-Nate

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