In iLife08 what is best setting to convert avi 720 and digital video 1080i

What is the bottom line for best quality for 720 p TV.
1.) My import is digital video 1080i to i Movie 08 (full quality)
What should I use for sharing on AppleTV
- the preset Large (which is 960x 540)
- or some custom setting 25 fps at 1220x 720? ( H.264 display dimensions at 24/25 fps is 720p (1280x720) ) - or what should the setting be??
2.) Have Windows avi older 720 *480 video, what is best setting to convert this for Apple TV? The 640 setting on QuickTime premium is not very good
Thank you so much. Peter

Your best option if you are using NTSC footage in imovie is the export to/movie large (960 x 540) at 30 fps, the resolution won't go any higher and still work on the tv. Don't even think about changing the framerate to 24/25 fps, even though you'll be able to export to 720p (1280 x720) changing the framerate will make your video jerky.
If you are using PAL then yes you could export to 720p (even though the specs say 24 fps, 25 fps does in fact work as well), you could try a few tests yourself but I've already done them and IMHO there is so little difference between 960 x 540 and 1280 x 720 that it isn't worth messing about setting up and trying several manual exports to get the best results when you can click one button and be done.
So far a AVI conversion is concerned, I'd try mpegstreamclip, but saying that I can't really be sure. AVI is a container not a codec and I would need to know what codec is actually used inside the container to answer your question properly (Quicktime may tell you though). The problem with AVI is that it is simply so old (even microsoft abandoned it over 10 years ago), unfortunately in a small number of cases some of the codecs that were used in AVI are simply no longer able to be converted. Probably not so likely but at least you are warned.

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