Optimum Video File Size To Avoid Buffering?

I am attempting to encode two 3 minute .flv files for my client for their website. I have encoded both of them under a number of settings and I am now down to tiny 8mb files in order for only one of them to play without excessive buffering. It will play, but it looks absolutely horrible, like the folks are under water. The original file was a .mmv that I first encoded to an .flv file around 18mb that looked fairly nice inside of Dreamweaver. I am using Adobe Media Encoder. The excessive buffering is "play one second, stop for 3-5 seconds", etc. So a 3 min video can take a half hour to play sometimes.
I have gone through the whole process this forum recommends for updating drivers, checking the settings for the website (100mb) (locally now on flash 10.3) and the global settings (client site has unlimited access). I have checked my download speed (Download Speed: 5298 kbps (662.3 KB/sec transfer rate).
These videos need to be viewable by many different people so there are many variables that I cannot control. I am trying to target DSL and above, not modem.
We are actually able to stream internet material to our tv off this computer and my webdev computer is a new ssd running windows 7 pro.
I would appreciate help in getting these two videos encoded and up on the website in a flash player so that they do not buffer excessively.
Thank you.

I did post on the AME forum a month ago about issues I was having encoding and an Adobe rep did attempt to help me privately. He finally said since the flash player was also involved I might have better luck with the flash forum, more visitors etc.
There are hair raising stories going on that forum right now too. My original problem was that AME CS5 would stop encoding at about half way through an hour long video, compress the hour of video (powerpoint presentation) into 30 min and truncate the audio at 30 min. I ended up having to strip the hour long audio from the original file (f4v) with Quicktime pro and use it without the video (because of the poor quality video that resulted). It seems like right now folks are having similar, but slightly different issues encoding and some of them are shops where they do *a lot* of encoding. I don't encode that quantity. I just want to encode a single video once in a while for my client and I rely on AME to help me get through the process.
I was told by someone who works with both PC and QT/Apple/Mac that if a file (in this case an f4v) was originally encoded in an Apple environment (Final Cut Pro) that my machine would need to have the QT codecs loaded to play the file. This despite the fact that the f4v file was being encoded in Adobe to an flv for flash playback. And that was the case, I ended up having to buy the QT Pro to work with the file and skip AME altogether. It makes no sense. But the fellow who took the f4v file to test said it played fine on his machine with the QT codecs loaded. Go figure. I didn't know the presentation was 60 min for 4 days until something just didn't seem right. AME or Flash Player couldn't play the file.
Anyway, I thought I would give this forum a try. There must be a few web designers here that work with both products and might have some tips. I don't know if my problem is related to Flash Player or AME. It doesn't make any sense why this is happening. It's a 3 min interview of only moderate video quality. I received the original as a .wmv which probably complicates it even more. AME looks like it is encoding it ok, but Flash Player is butchering it.

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