Maintaining Quality HD with Reasonable File Size

I've just completed a 1/2 hour HD film (1440x1080) and I have been trying to get it to a file size that's under 2gigs. I am finding that the compressor settings either make the file size too low (degrading the picture quality), or too high (9+gigs!). Tried the h.264 LAN preset but the quality was not good enough. I want to find that sweet spot hopefully in mkv or mp4 format. Any ideas?
Thanks!
~shiva

Well, it's hard to predict what someone else will want. Your "sweet spot" is different from someone else's.
You said you wanted it under 2GB. The H.264 for LAN preset aims for 632MB per hour. Did you try increasing the bitrate? And did you make sure it was set for your full resolution, and was not scaling it down?
Jeremy

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