Process for exporting in FCPX and then using MPEG Streamclip to downgrade?

I have footage shot with a 5Diii, and it is set at 1920x1080, 23.98p.
When I export through FCPX at H.264, it gives me a beautiful master file, but is larger than the 4GB that I need.
What is the process for using MPEG Streamclip to get a smaller file?
Do I export a master file in FCPX first using a different codec, and then use MPEG Streamclip to compress it? If so, what would be the best setting to export from FCPX, and then what would be the best setting to compress at in MPEG streamclip?
My goal is to be as close to 1080HD as possible.

Here is the background story....... I provide movie files on a DVD delivery (files in SD quality) and then also give a copy of the same films on a flash drive so clients can have it in HD quality, and plug the flash drive directly into the TV.
This always worked fine in the past until I ran into a movie file that is 4.7GB, and would not copy onto the flash drive, since flash drives only accept files up to 4GB.
So I tried reformating the flashdrive to exFAT. It allowed me to copy the 4.7GB on the flashdrive, but when I tried plugging it in directly to the TV, the TV did not recognize the drive. (I learned that exFAT is not always compatable with all TVs.)
My other option would be to download an app to let me reformat the drive into NTFS which accepts files bigger than 4GB, and supposedly works better with TVs. I haven't tried this yet because I am worried that downloading that app might mess up my computer. ???????
So....I have come to the conclusion that the only other thing I can do is compress the 4.7GB file to be 4GB (or less) so it will fit on the flash drive which I believe had an original format was MS-DOS FAT.
Are you suggesting instead of exporting the file from FCPX in H264, I should do it in ProRes? The file will be much larger than 4GB, but, then I can compress it, without losing as much of the quality as I would if I compressed an H264 file? Either way it needs to be 4GB or less, so I don't know if that defeats the purpose of using a ProRes file to begin with.
Thank you so much for helping with this!

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