Does ANYONE understand this? I need an expert.

Here is the scenario:
1. I recorded 48 minutes of video on a Canon HDC-TM700 HD camera.
2. I copied the video file (Clip #5.mov) to a Mac Book Pro. The original file size is 50.16GB
3. Opened the file in Final Cut Pro and Exported the file to QuickTime using the default settings. (File name Dunlap_1.mov) The file size is 563.9MB
I copied Dunlap_1.mov to a PC and tried to play the video. I get an error "The movie file Clip #5.mov cannot be found" Clip #5 is the original video. Why is it looking for Clip #5.mov?
Is Dunlap_1.mov just a project file that points to the original video? 563.9MB seems too small to be a complete .mov file.
4. I then used compressor to "compress" Dunlap1.mov. The compressed file name is Dunlap_2_final.mov. (File size 2.91 GB)
I cloned the Youtube settings in compressor and reduced the "Geometry" setting to change the frame size from "Up to 1280x72" to "Up to 960x540"
I didn't change any of the other settings.
I moved Dunlap_2_final.mov to a separate PC and it ran fine.
I've attached a screenshot of the "Info" panel for each of the three files. (see below)
My Questions are:
Is 2.9GB the smallest I can expect to get this 48 minute video clip? I'm satisfied with the size and quality
Are there other settings I should change or is the YouTube clone with the smaller frame size a good selection for me
It took 5 hours to compress this video. That seems like too long.
All of the Final Cut lessons and tutorials that I have found tell you what to do, but none of them tell you WHY? What is the best way to learn the theory behind these video settings. Codecs, bit rates, color profiles, other audio and video settings.
Thank you in advance for any advice you can provide.

What application are you using?
This is the Final Cut Pro X forum. It looks like you made a reference file from the scratch disk as in an older version of the application. Your question should be posted in the Final Cut Studio forum.

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