I am using an mpeg4 recorder to timeshift regular tv. It records to 640X480 2 Mbps bitrate Divx with ADPCM audio.

I then take the file over to Vegas 7 Platinum to edit and I like to re-render with WMV9 encoder because of the wide playback options, and the codec seems to be very robust, especially using VBR two-pass.

I like my files to be able to stream via Windows media server, and I also like to watch them via direct playback on tv (52" Aquos).

Right now I'm rendering to 320X240 1Mbps WMV9 VBR and the quality is OK on tv, portable devices (Archos 604 wifi, Cingular 8125) and computer.

My question is is it worth it to bump up the final WMV9 bitrate to 1500 or 2000 will I get a noticable improvement in quality and still be able to stream without overloading the server?

File size is important to me too. I like a two hour video to be around a gig. That way it's more transportable via thumbdrive, DVD-data, etc.

Basically I'm looking for advice about the most cost-effective method that fits my criteria. I'm looking for the sweet spot, holy grail, nirvana, or utopian scenario.

Thanks for any input