H.264 file size

I have an Aiptek GoHD camcorder. (I thought I would work with this first before jumping into a HDD 1080 camcorder later this year) The quality of the video is remarkably good given the price of the device. The compression format is H.264 MPEG-4 at 1280 by 720. The file sizes are surprisingly svelte at about 25Mbyte per minute. I can take the SD card out of the camera, place it in my card reader and transfer it to my mac pro as .mov files that I can then import into iMovie08 without a problem. It converts them to Appple Intermediat Codec for editing purposes which of course balloons the file size. When I export the movie using quicktime, I am using the following settings:
Size: 1280x720
Compression type: H.264
Frame rate: Current
Key frames: Every 24 (Frame reordering check box selected)
Compressor quality : Medium (Faster encode check box selected)
Data Rate:: Automatic
This results in final file sizes that remain in the range of 100Mbytes per minute (or larger!)in spite of using the "medium" quality. I am not adding any effects except for a few titles. I am pretty frugal about what I want to record with the camcorder. All I really want to do is import 5-10 clips (of about 1-3 minutes in duration each) into iMovie, chain them together beginning to end and export it back to the hard drive as one movie in the same format in which the .mov files were originally recorded. My questions are:
Is the inefficent encoding a result of some setting that I have chosen incorrectly?
Is the inefficient encoding just a limitation of iMovie and would I get more efficient encoding if I went to FCE4? (I would rather not have to pony up for the pro version of Final Cut to get the "compressor" function but would consider it if I knew it would do the trick)
Would I be better off getting a hardware based encoder for the Mac (if such a creature exists) since the hardware based encoder for the Aiptek does such a nice job?
I appreciate any help!
Tom

Is the inefficent encoding a result of some setting that I have chosen incorrectly?
If by your question you are referring the the difference between source data rate and final target data rate, the you problem is in your settings. File size s directly proportional to your total combined data rate per unit of time. Selecting an "Automatic" video data rate tells QT to use as high a data rate as is it thinks is necessary. You can, instead, simply limit your final total combined data rate (i.e., Audio + Video) to that of your source or approximately 25 MB/M.

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