that is all really nice, but not really an answer to any of my questions
somebody a good solution
Alas, you have not really asked any good questions. For instance, you wanted to know if the default average data rate setting was too high. Unfortunately, you don't say which codec/format your are trying to use. If MPEG4, then the settting should be good for most movies. If H.264, then the movie will almost definitely not be iPod compatible. You are looking for a panacea where none exists. If you want specific answers or recommendations, then you must provide specific information about your goals, the target settings you are using, and the source movie content. A creepy mystery film would predominately contain less action and a lot of dark, suspenseful scenes while an action movie would likely contain lots of action against both static and rapidly moving backgrounds of varying graphic complexities. Depending on your "tolerance" for encoding speed and demand for final quality, different settings could and should be used.
In addition, you have not stated what other software might be available for use on your computer. You, could for instance, use HandBrake to simply rip and then create an intermdiate format which could then be converted to your final fomat by a secondary application that has a much "tighter" conversion algorithm with few or no user settings to confuse you. Podner, is a very tight converter only application. Forty-TwoDVD-VXPlus is a reasonably "tight" extractor/converter but not a decrypter. Neither is free, however. In the final analysis, you get what you pay for. And, while HandBrake is a very capable application in the right hands, you must learn how to use it properly to get the most out of it.
It never ceases to amaze me how a student readily understands the importance of practice to train an athelet's mind and body as to how to react in sports but totally fails to see the relevance of homework in training the mind for problem solving by first recognizing and then classifying the nature of the problem at hand. Before you can decide on how to get to where you want to be, you must first know where you are and where you want to end up. The best advice I can give is to join your local Apple/Mac User Group and get some one-on-one time with an experienced video user. (Many goups have a Video SIG which specializes in video specific problems and questions.) As a last resort, if you really want an answer here, how about capturing and posting a JPEG of your typical HandBrake settings and posting it to the Internet or sending it in an E-mail.
2.0GHZ G5/533MHz G4 DeskTop/400MHz G4 PB Mac OS X (10.4.3)