Optimal export settings for filesize?

I have a 3 minute 30s movie, 30 fps, put together from clips that I captured using camtasia studio. It's 676px x 408px.
I've edited it together in premiere cs4, but I'm having issues trying to get a good balance between filesize and quality. The best I manages with quicktime was 60mb while retaining quality, the best with mpeg-2 was 122mb.
This is out of my area of expertise but those numbers seem high. I created a quicktime version that was 30mb, but the quality was terrible,
Please could anyone give me some suggestions on which codecs and settings I should be looking at to try and get the filesize down?

I find H.264 to give me the best quality with the smallest file.  But there's really no magic formula here.  Trial and error is the name of the game when it comes to specific settings.

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    Since posting the test I suggested you run, Alesse, I've done some testing of my own, with some interesting results. They aren't going to help you much, I'm afraid, but they might shed some light on the whole process of making slideshows.
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    So today I played the same slideshow from three sources. One version from the camera, one version from iDVD and one version from a Digital Video Recorder (DVR).
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    The images were delivered to the iMovie four ways:
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    2) I imported the same images with Ken Burns ON (but with no animation); and
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    3) connected the camera to a Digital Video Recorder (DVR) and burned a DVD on the DVR. This was so I could compare the quality of iDVD to a DVR recording.
    Then I connected the camera to the TV so I could compare it, in turn, to each of the DVDs. Because each image played for a total of 16 seconds, I was able to play both the DVD and the camera simultaneously and switch the TV back and forth between the two inputs to compare the image quality of the camera to a DVD.
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    • At first I thought the DVR image was better than the iDVD image, but reconsidered that later. Each had its own positive qualities. There was little difference. Each was slightly better in some respects than the other, worse in others. It was basically a wash. Both had about the same amount of jaggies, sometimes in different places.
    • Another interesting result was that all the clips — from all four sources — played basically the same on the camera and on the two DVDs. There was very little difference among the four import methods. (I expected more difference.)
    • There WAS an obvious difference among clips played in iMovie, however. The DV stream exported as a DV Progressive movie displayed with better quality in iMovie itself. The difference wasn't huge, but it was sharper, more "life-like".
    • It is obvious that encoding an iMovie project to the MPEG-2 format used by a DVD — whether by iDVD or by a DVR — sacrifices quality. You won't notice it much on some images — flowers, faces, landscapes — but you will see jaggies on others.
    • When the test was over, I watched a DVD slideshow of the same images I had burned a few weeks ago containing three iMovie widescreen formats: DV Widescreen, 720p, and 1080i. It was a close call, but I think they were all slightly better than the DV slideshow. Some images, especially, were better.
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    Softening the TV picture can help. My TV offers a tremendous range of sharpness, a feature common to new TVs.
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    • I don't have DVD Studio Pro to test. Perhaps someone can compare that too?
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