Anyone using this program to convert TV shows? If so, what settings are you using?

I'm trying to balance quality and file size and can't find the balance I'm looking for.

Up to now I've used Windows Movie Maker, but with the limited selections, file size varies greatly. I love the lower bitrate sizes (150kbps gives me episodes at about 25mb each) but the video quality is iffy....pixelation with alot of movement on the screen and the audio is downmixed to 16 bit mono.

I got WinAVI and have been playing with it....wondered if anyone has gotten 30 minute TV episodes to a fairly small file size with pretty good quality? And if so, what setting are you using for best balance? I'd love to get these files down to 30 - 40 mb with good quality....seems doable with the tiny resolution.