Help editing 1024x768 screen capture demos

Question

I am producing software demo screencasts. I have seen excellent examples of this type of content at 800x600 and less than 200 kbps with audio, and I want to do something similar.
I import 1024x768 wmv (from WME) to a project with settings:
Desktop
23.976
1024x768
In the source monitor, the stopped video has good image quality. When played, it appears pixelated/distorted (at 100%). When exported at 1024x768 it is also distorted, even at ~500 kbps. Unreadable.
There are so many dials to turn in the capture, import and export settings I am at a loss as to where to focus first.
Looking for some guidance on the capture, editing, and exporting of web-delivered software demos with audio.

Answer 1

I can't really think of much in the way of settings you can play with in
capture or import that will have much if any affect on your media. Your
bringing WMV files, which is already a compressed delivery format onto
your Premiere timeline. You say they appear acceptable in your source
window, so it has to be during the export process your getting the problem.
I don't normally use WMV files in my projects, but I do know that it is
not unusual to not get the quality you want when rendering a new file as
you get some or in your case alot, of generational loss.
Harms comment about the 23.976, in his perfect imitation of House, is
valid though. Still, take a short part of the project, and experiment
with different settings. 15, 24 fps, smaller aspect ratios, and compare
them. Its really the only way to get any understanding of the export
process. Its more an art than a science.