How to produce HD video files with best quality/size ratio?

I have used the HC3 for 2 days with iMovie and iDVD on my mac mini.
When i started to import the footage with iMovie, i started to do it manually, moving forward and backward between scenes. This caused iMovie to crash very frequently. I then chose to let iMovie import the footage by itself and everything went fine.
I then easily added the chapters, transfered to iDVD and created a DVD with menus in 1 hour. I am really exited about how fast i was able to create a very nice DVD.
However i am trying to convert the footage from iMovie into a small (100-200 MB) in a 16:9 format but I am getting very big files that are not as sharp as the original or some other examples i saw on the web such as the examples in this page about the Sanyo DMX-HD1:
http://www.akihabaranews.com/review-62-SanyoDMX-HD1%2C+everything+except+for+HD%2C+thedisappointment.html
Would you have any recommendation about the settings to export in quicktime or other format? Which video codec provides the best quality/size ratio? H.264? MPEG4? interlace or not?
~Antheo

I'm not familiar wih HiDef content - look at my hardware specs... I'm based in the early 90ies, way before 1080p etc..
Prof Pixel made some... observations...
http://homepage.mac.com/profpixel/color_bars/colorbars.htm
http://homepage.mac.com/profpixel/iDVDsize.html
most codecs, which are implemented in Quicktime, are between good and excellent; my personal favorit is mp4, but in this case, I prefer the algorithms of http://isquint.org/; it also offers a h264 converter, which, I've read, should be excelllent, a little faster then Apple's and with excellent results...
compression depends very much on content and final output media... I'm afraid, you really need to do some tests on your own....

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