Using MPEG Streamclip for Mac. Help me if you can

Hi, I've found out about MPEG Streamclip in Apple Discussions.
I opened Streamclip for the first time and converted an .mpg file to .mov file by clicking File>Export to Quicktime. It successfully converted quickly and I opened it w/ Quicktime and was satisfied to open its properties and see two individual tracks for visual and audio. This should convert to iPod video format w/ sound, correct? What bugs me is the fact that the file size multiplied by 4, or went from 256MB to 1GB.
I would like to know the perfect exporting settings for good iPod quality (sound and visual) and reasonable size. What scares me is that if and when this newly 1GB file is converted to iPod, it'll be even larger, since a previously successfully converted movie went from 3.5MB to 5.1MB.
I'd like to know your experiences of using Streamclip. Should I experiment? What setting did you use to get the mpeg files to .mov files with smallest size and equivalent quality? Any reply is appreciated, and ones that answer my questions shall be favoured.
thnx for your time

In a nutshell, YES you should experiment. You should also try iSquint incidentally.
However, MPEG Streamclip 1.5.1 has an iPod button if you do File -> Export to MPEG4. Clicking that button sets the parameters to equal what the iPod would need to display without having to convert to a QuickTime movie first. Do one both ways to see if QuickTime and MPEG Streamclip's output looks identical (I've found QuickTime does a better job on animation).

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