Thought I would post my settings in the hopes that they might help some of you having problems with poor video quality. I know there are other programs that will create .mp4 files. This is for the Windows OS and Macs.
1. Download and install Handbrake 0.9.5
2. Assuming you already have an .iso of your video ready to go, launch HandBrake.
3. Click on “Source” in the upper left and then “Video File” and go grab your .iso.
4. On the right, click “High Profile”.
5. Where it says “Destination:” change the extension to mp4 from m4v.
6. Picture Tab: Set the Anamorphic to None. I then set the width to 720 and the height to 480. I do not check “Keep Aspect Ratio”.
7. Click the Video Filters tab. Set Detelecine and Decomb to Off.
8. Click the Video tab. Set the Framerate (FPS) to 29.97. Click on Avg Bitrate (kbps) and set it to 1000.
9. Click to Audio tab. How many tracks appear? The goal is to end up with one track with an Audio Codec that shows up as AAC (faac) or MP3 (lame). If there are others, right click and remove them. On the remaining track, set Mixdown to Stereo, Samplerate to 44.1, and Bitrate to 160.
10. Skip the Subtitles and Chapters tabs. You can figure those out on your own later if you need to.
11. Click to Advanced tab. Set Maximum B-Frames to 0, and uncheck the CABAC Entropy Coding, 8×8 Transform, and Weighted P-Frames options.
12. Press Start! The conversion process is slow. We’re talking hours perhaps. I leave my computer alone during this period of time.