I ripped a .AVI file with Visual Hub, and it was 932MB and optimized for iPhone and added to iTunes, with the settings "Go Nuts".
Added to iTunes, it was a 2GB file from its former 900MB state ... why?! It doesn't look like it's incredible quality or anything.
Added to iTunes, it was a 2GB file from its former 900MB state ... why?! It doesn't look like it's incredible quality or anything.