Zero quality loss compression rates

Hi. This my first post. Thanks to all who have posted so far, very helpful. My goal is to get away from DVD storage for home movies entirely, so I need to compress my .avi files to a reasonable size. I refuse to do so at the expense of quality, however. After a dozen experiments in QT, I determined that from my Sony Handicam, the following settings retained full clarity:
h.264, 29.97frames/s, 5700kb/s, best quality, 640X480.
The end result for a 54 second clip was an .mp4 file roughly 1/5 of the size of the .avi (188MB down to 38MB). Has anyone achieved a better compression rate without quality loss? I want to ensure the best rate before I set to converting hours of home video. Any suggestions appreciated.
Message was edited by: Dirk The Hammer

Patrick, thanks so much for your help. You're all really helpful on here!
Exporting in prores still displays artifacts and they show up when I bring it into FCP (regardless of whether I import the clip fresh or have it saved back from a "send").
Here's what I tried:
importing clip directly into a new motion file (not sent from FCP) - movie displays with artifacting - upon rendering, rendered clip still has issue - imported into FCP - still shows artifacting
by importing the motion clip with artifacts into FCP and display in the timeline, FCP changes it's settings to match the clip as usual - I then tried importing the original source clip directly into FCP and when I move it to the timeline, it also shows identical artifacts. However, if I bring in the original clip first, so FCP changes it's settings to match it, the motion clip still shows compression.
Assuming the problem is with the transcode, is this just an issue with this video format working with motion? If so, I assume this means our video team needs to use a different codec. We're shooting a lot of green screen for HD video - any recommendations for a better codec?
Also, is this an issue that Apple can address with future versions of Motion?
Thanks again!

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