Best MPEG4 h.264 conversion setting using MPEG Streamclip 1.9.2

Hello. I'm new in this forum. I'm starting to shoot HD footage, and have a set of questions that I'm hoping to be answered in this forum.

1.) What is the best setting to convert AIC “Apple Intermediate Codec” or “Quicktime Movie” format (edited in FCE 4.0) to “MPEG4” using MPEG Streamclip 1.9.2? The HD resolution is 1280x720 @ 30 (29.97) fps? This was originally shot using my Kodak Zi6, converted using MPEG Streamclip to AIC, and edited in FCE 4.0 (Canvas set to HD only, 1280x720p @ 29.97). I want to be able to play the MPEG4 output on my Playstation 3.

2.) Am I using the best codec for the purpose of creating a library of home movie clips to be viewable on the Playstation 3? I would like to have minimal loss in HD quality from the original footage.

I’ve tried a test, and here is my setting, which worked so far on my Playstation 3:

Input file:
Filesize: 2.11GB
Lenght: 7 minutes 36 seconds
Bit Rate: 39.60 Mbps
Video Tracks: Apple Intermediate Codec, 1280 x 720, 29.97 fps, 38.06 Mbps
Audio Tracks: 16-bit Little Endian stereo, 48 kHz, 1.54 Mbps

MPEG Streamclip Export settings:
Compression: H.264
Quality: 50%
Sound: MPEG-4 AAC Stereo Auto 256 kbps
Frame Size: 1280 x 720 (unscaled)
Frame Rate: 29.97
Interlaced Scaling
(Note: Most of the default settings were left as-is)

Output file:
Filesize: 191.10 MB
Lenght: 7 minutes 36 seconds
H.264, 1280 x 720, 29.97 fps, 3.25 Mbps
Audio Tracks: MPEG-4 Audio stereo, 48 kHz, 256 kpbs

What do I want overall: HD quality video footage on my Playstation 3 without the huge file size.

Thanks,

Ernesto