Ok, so I made the template into mef file. I opened it, then selected 'NTSC' in Video Mode. MPEG type became 'mpeg 1'. Then, details:
Res 720*480. Audio Rate = 48khz.
Details->Search Method = 11 y Search Range = 21
I frames 12, P frames 3
Auto GOP = VCSD
Closed GOP interval = 1
Bitrate type Variable Bitrate, Max 1856kbps, Average and Min 0
CQ5
NR = 8
Motion Search = 11
Enable "Do half-pel search"
Disable "Motion search pixel movement"
VBV buffer size 0 (I did not change this, or any other settings now)
Enable User quant matrices. But when I view the quant matrices, the matrix has changed! So I saved as profile, then edited the .mef file with Notepad, and replaced the matrix values, ie from the following point onwards:
user_iquant=1
intra_q[0]=8
intra_q[1]=9
intra_q[2]=12
intra_q[3]=22
intra_q[4]=26 etc etc.
I converted my 42 minute avi file and got 720MB. My 1Gb file seems slightly better quality,