Create MP4

For best DVD quality from an FCE project I export using QT conversion to an external hard drive, then re-import to Toast, as the file is too big to do it on the laptop. This works well, but it's over 200GB file size. Can I create an MP4 file from my completed file on my external drive? I'm told this will be a fraction of the size and can be exported to Apple TV and other devices. Something called Handbrake has been mentioned. I'd rather use the file on the hard drive than use the DVD, as I'm sure there's some degradation in the creation of the DVD. I want to retain the full HD quality.

You should not to go DVD unless you actually want to create a DVD. It's a very heavily compressed format designed for DVD set-top box playback. That's all it should ever be used for.
If you want to go to AppleTV export to QuickTime Conversion and select Apple TV.
To retain the full HD quality do not export to QuickTime Conversion, but export to QuickTime Movie.

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