Preparing video for the web...I am lost

Hello all,
I had a project that began in imovie 06. It is an hour long production that i wan to prepare for use on a web site. I know that an hour long video is asking a lot of a web audience but the work is unique in that it is a poet reading a very long poem. I want to get this right for the few people who will actually want to see this thing.
My workflow is as follows. Share the video from iMovie 06 with expert settings set to Quicktime. High quality 480 x 360 letterboxed AAc 128. The resulting hour long video is 360mb
I open that video in Quicktime 7.6.4 then I copy and paste the first 15 min to a new player. From that new player I Export for Web and create the three standard versions. The problem is that the desktop version is 105mb and iPhone versions is 108mb. Both are bigger than the section of the movie that i started with 90MB. This suggests to me that there is a lot wrong with my workflow.
Any suggestions would be greatly appreciated.

Re-read your last paragraph for the obvious clues to your troubles. Going from 90 MB to a larger file size means you are "up-sampling" previously compressed data.
Even though your 12 GB file seems absurdly large now it will become highly compressed when using the "Export for Web" feature of QuickTime Player Pro.
Do some simple "one minute" test files from your DV source file. Compare settings (pen and paper) and dimensions and audio quality. Ask some questions about the source file. Do you really need "stereo" sound when "mono" would be half as large? AAC audio is good but do you need 128 when 64 would be half as large in file size?
Is this a "talking head" (little motion) video track? Could you replace the video track with some still image files and still achieve your goal?
Just something to think over.

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