I need help with Compressor 4 settings to convert .mp4 files to .m4v for iBooks Author

I'm a curriculum design guy with no video background. I have Compressor 4, but don't really know much about how to best use it. I'd appreciate some help with getting the right setting for my project. Screen shots of settings would be much appreciated, since I don't know much video terminology.
I'm making an free iBook for students on WWII propaganda using old videos from the Internet archive.
I'd plan to use Compressor to:
1. Convert the .mp4 files to a .m4v that iBooks Author will accept. (I know I can use QT for that, but it increases file size)
2. Use Compressor to reduce file size so my iBook doesn't get too big
3. Get videos that look & sound the best, given the poor quality of the original source videos.
Here's some sample videos that I'll use:
http://www.archive.org/download/OutOfTheFryingPanIntoTheFiringLine/OutOfTheFryin gPanIntoTheFiringLine.mp
http://archive.org/download/AvengeDe1942/AvengeDe1942_edit.mp4
PS - I will also be editing some of the original videos in iMovie - if I use different settings to prep those videos for iBook Author, let me know.
Much thanks in advance for any help

Compressor is half the size compared to QtX encoding, 17 MBs...
File Format... H.264 for Apple Devices...
Device: iPhone Local/WiFi
Aspect Ratio: 4:3 480x368
Data Rate: 700
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