I need high quality at smaller MB size!!

I am looking for a solution for a problem i have been having.
I have a .avi file that weighs 156MB. I want to convert it into .flv and play it over the web as a course. As you well know the .flv size i am loking for is around 30 MB. I have tried Flixpro for conversion, but it takes 5 hours to do the conversion and since the video has many fast moving flash animations in it; those areas have very poor quality.
Then i tried Adobe flash media encoder. It takes far less time to do the same compression but gives a size that is even bigger than the .avi file!! and the out is better but it jitters here and there which is not at all aceptable. I am confused and need to come up with a solution at the earliest. So, any help is much appreciated.
Anything i am missing in the process?? Please advice.
thanks in advance

What's your budget?
Canon HF series is likely your best bet - These are high definition camcorders with pretty good lowlight performance, and they all have microphone input jacks.
You may need an adapter or level converter to connect line-level outputs from your soundboard to the mic-level inputs.
Another option is to go to some of JVC, Panasonic, or Canon's pro-level gear.  These are going to be very expensive though.
*disclaimer* I am not now, nor have I ever been, an employee of Best Buy, Geek Squad, nor of any of their affiliate, parent, or subsidiary companies.

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