What are good settings to output for creating proxy files?

when i want to make proxy files for smoother editing in premiere. What should i set my output settings too?

Please tell us more about your intended workflow. I think you may be using the word "proxy" when you mean "intermediate" or "mezzanine" codec.
A "proxy" is a low-resolution, low-bitrate representation of the actual footage. The proxy clips are used to rough out the edit, and when completed, the original media is reconnected to the project for the final high-quality render. I don't believe many folks are using proxies these days with computers being much faster than before.
An "intermediate" codec is something that is not necessarily a smaller file than the original - it is often much larger in fact - but it is easier to decompress in the NLE timeline and therefore provides smoother playback and more responsive editing. For example, GoPro clips are an H.264 codec that can bog down even fast computers, so the GoPro Studio software can transcode to an .avi or .mov intermediate file that will be a larger clip than the source, but plays back so much easier. Quality is maintained, so the intermediate can be used for the entire editing process and exporting of final video, no need to re-link originals.
So, if looking for an intermediate codec, check out Cineform (from GoPro), Avid DNxHD, Matrox, Grass Valley, or similar. These are free downloads. I was assuming you're on a PC, but for Mac users, just use Apple ProRes if you are having trouble with the source video.
Thanks
Jeff Pulera
Safe Harbor Computers

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