Optimun settings for Widescreen mp2 (m2v) converted to mp4/h264

ive recorded a few films of freeview (UK digital terrestrial tv - PAL-25fps) and, after exporting as m2v file (mpeg2), i want to convert to mp4 / h264 and have a good picture quality when watching on a 20inch imac.
At the mo ive tried using 368x208 (very small widescreen setting) with around 600kbps, keyframe every 25fps (to avoid that pulsing keyframe effect that i find really annoying with mp4).
Can anyone share with me a good setting for good quality mp4 ready to be viewed on a 20inch imac - hopefully alot smaller than mp2 (1.8gb for a 1hr40min film) - managed to get this 1.8gb down to around 1gb for a 1.40hr film

i know- just doing it in qt because i couldn't see a 'key frame every...' function in stream clip.
Cant see a export to apple tv function theres just a ipod button in the encode settings box. - im using version 1.8
Message was edited by: steveOooo

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http://boardsus.playstation.com/playstation/board/message?board.id=ps3media&mess age.id=22987&query.id=96226#M22987
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Optimun settings for Widescreen mp2 (m2v) converted to mp4/h264

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