Best way to export from FCE for compression?

Hi again, folks!
I've read/learned that, when you plan to compress your video, you should ideally export from your editing program in the final resolution (size) that you want the video to be. Apparently this is because editing programs do a better job of sizing the video than do compression programs (such as Sorenson Squeeze, which does its best work doing only compression). What I'm wondering is this: When I export to QuickTime from FCE, I have two options, namely Export as a QuickTime Movie, or Export Using QuickTime Conversion (which allows me to save as a QuickTime or other format). So, my question is, if I Export Using QuickTime Conversion, does this actually "convert" the video to some 'bastardized' version of QuickTime, or does it just reduce the size? I'm asking because I don't understand why, on the one hand, FCE refers to exporting a full size video as simply "Exporting as QuickTime" while on the other hand (eg. when I'm lowering the resolution), it's called "QuickTime Conversion" (which is lumped in with a whole bunch of other output format possibilities such as .avi, mpeg4, etc).
I'm probably not being as clear as I'd like, but more simply put, why does FCE consider going from hi-res QuickTime to low-res QuickTime a 'conversion'?

One suggestion I received (just tonight) from another forum was to export the video from FCE, but not as a self-contained movie; this way (I'm told), the video is not being compressed or otherwise altered, and hence will give me the best results when I compress
The information you received on the other forum was half right and half wrong. The difference between a self-contained movie and a movie that isn't (known as a 'reference' movie) is NOT the quality; it's that the self-contained movie is an exact copy of what's in your Sequence while the reference movie only refers to the original media and renders ... it doesn't copy it. Since reference movies rely on the original media (and render files) for playback or when used in other applications (like Sorenson Squeeze), they will not work properly on any other system nor will they work if any of the original media or render files are moved, deleted or otherwise altered.
The quality of the two types is identical.
-DH

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