1080p to 720p with H.264 setting

720p is 1280x720 square pixels. 400x224 is never gonna be 720p.

As was said before in this thread, work in a fcp sequence whose setting match the source's. File: Export: quicktime movie with current settings. Bring these files into compressor. Customize the apple: formats: quicktime: h264 to match the desired specs. Open the resulting files in mpeg streamclip and do a save as mp4.

Why don't you ask the client for a sample file that you can match the settings from, cause otherwise you're going to be going around and around with this indefinitely.

>They already film in 1280x1080/60i (not 1920x1080).

That is ultra-anamorphic 1080i. The only camera that shoots that format is a DVCPRO HD P2 camera. But when put into a 1080 timeline, it gets stretched out to fill the 1920x1080 frame.

>Later, they want final with 720p, h.264, mp4 with 400x224.

Fine. Edit the native format, export a full res master, then use Compressor to make an H.264 MOV file at 400x224. Then use MPEG STREAMCLIP to "Save As" an MP4...that just re-wraps it as MP4. Done. (Just like Michael says)

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They can call it 720p all they want...what you are delivering is what they are asking for....400x224 H.264 MP4. The fact that THEY call it 720p is a mistake on their part...but whatever. It's just a name at this point.