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I'm not really sure if this is the best place for this question but it's on my HTPC so here goes.

I'm starting to back up some old home movies to my HTPC's hard drive. It's an old Handycam Hi8 and I'm using an EasyCap DC60 with Cyberlink PowerDirector. My question is what would be the best format to convert these to? I think it's defaulted to MPEG-2 and DVD SQ. But it's using about 15MB per 30 seconds. This is going to eat a lot of space. So is there a setting someone can recommend to keep it true to it's original picture but require less space? Unless using the default will somehow upconvert it to a better image but I do not imagine that it will.
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