Editing & output of files from Canon Vixia m30 to .mov

I'm running a dual core Vista machine with 4 megs ram. I have the paid version of Elements 9
I tape actors auditioning for movie roles. Most producers/agencies want .mov files.
Not only that, they sometimes want nearly 5 minutes of tape in under 15 megs!
No problem in the past with elements 4.0 and mini-dvd tapes.
But now, and I'm sure it's because I don't have the right import and edit project setup, the files, even small ones, look muddy and/or pixilated.
I *think" I should be shooting in FXP hi def format and editing the avchd files in Elements 9 then exporting as a .mov
Only once so far has the output not looked pixilated and muddy. (For the life of me I cant remember if I had transcoded to .avi or wmv and edited from there.
I did indeed try various settings in the advanced section for mov output.
ANY advice for the type of settings I should use to shoot, import and output to mov's would be GREATLY appreciated.
I know the quality of files longer than a couple of minutes will be degraded, that's fine, (I even use 320x240,)but for even small files to look bad means I don't have the correct setup.
Thanks in advance folks!
RJ

They will be viewed on computers as files only and most talent agencies and producers want .mov's only. As long as the actor's eyes are clear, they don't care much as to real quality. They know quality is lowered, especially on 4-5 minute submissions. Files are sent usually be YouSendIt, or directly to talent agents as .mov file attachments. Some are using Youtube and that's great as file sizes don't matter.
After reading some of your stuff, (I'm buying the book btw!) ... I do think I'm closing in on the right preset and camera settings now.
I still need to tweak for larger frame size like 720X??? (I can't remember, so used to 4:3 instead of 6X9!)) and rather than the old amd small 420X280. Along with keeping the size down with the kbps settings and "quality" slider in "advanced settings."
Upper field I know is important with .mov's and since the camera records PF30 settings as 60i, I'm honing in on the right preset.
Wow! There's lots to learn, but once I get it right, the actual production should be a breeze even on my rather old dual core pc, as again these are relatively short pieces.
Again, any other ideas are greatly appreciated.
I appreciate this community very much and hope to shed my newbie status soon!

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