Compressing HDV for web distribution

My source material is 1080i HDV captured on Sony HD1000 (PAL) camera.
This I've imported into FCP to make a 3 min movie with additional music.
My aim - good quality movie with a small file size
My best result after countless attempts is 22MB, up to 800kbps, with 640 x 360 dimensions following suggestions (below) to get me into the general ballpark.
http://www.larryjordan.biz/articles/bkcompresshdv.html
This I did from Final Cut: File>Export>Using Quicktime Conversion - the only thing I changed from suggestions in link was to increase data rate, 300 kbps produced poor results for me.
I've tried the different presets (and with numerous adjustments) in Compressor 3.5 but so far I've not managed satisfactory results. (From Download, QT7 Folder)
So wondered if anybody had any suggestions to produce good quality movies with a small file size from HDV 1080i source?

Thanks for reply
I edited in HDV 1080/50
I've tried sending directly to Compressor but when I submit any H.264 preset I get a 'failed' message.
I've tried sample editing with a Quicktime Movie of around 600MB in Compressor - it works with this - but with unsatisfactory results (so far)
As I said my best result was to bypass compressor and go with QuickTime Conversion.
I suppose by 'small' I'm wondering if 22MB/800kbps/640x360 (3 mins) is still quite large if, for eg, the movie is delivered to a client web site - I haven't got that far yet.
I didn't actually use the term 'good looking' but not surprisingly I'm concerned with retaining as much quality as possible with such file size reduction - not sure how else to define this. I'm relatively happy with the quality at 22MB - I've just done a series of test shots so far but in future will use a tripod, manual focus and limited or no transitions to hopefully aid the compression process.

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