Well, I went ahead on bought VH, partly thanks to how much people are praising it, and partly due to the fact the developer has a great sense of humour!
Anyway, I've realised that my goals (using files that are about 170MB per 24min episodes):
1) To convert AVI to .MP4
2) Preserve as best as I can the quality of the file (not amazing to begin with, but I'd like it not to get any worse)
3) Have the files size be roughly the same/smaller.
4) Have these files compatible with iPods, as well as Front Row and

TV
Right... so far, the first one is easy. Likewise, thanks to the easy presets in VH, the last one is also okay. Trouble comes when making number 2 and 3 play together. I know, I know, its going to be tough, and slow since I'm on a G4 1.33Ghz iBook.
My question is as follows.. has anyone had any luck keeping file sizes the same, as well as quality... NOT using H.264?