Composite,
Many people think file size is the issue when it comes to steaming video for the web. It's not. It's the data rate. You can load a HUGE file to the web and have it play fine as long as the data rate of that video does not exceed the viewer's data rate of their internet connection. If the data rate is too high, when the video reaches a point that isn't loaded it has to stop and buffer. I'm sure we've all experienced that and it's annoying.
Apparently the average internet connection speed in the US is 3 megabits per second, but I wouldn't rely on that statistic. I encode at a much lower data rate than that. Here are the settings I use. Hopefully you have the same options...I don't see why you wouldn't:
Codec: H.264
Video Settings:
Frame Rate: 30fps
Key Frames: Automatic (if you can't choose 'Automatic' try '300')
Data Rate: Restricted to 700kbits/s (although, you should experiment and see how low you can go)
Encoding: Multi-Pass
Audio Settings:
Format: AAC
Channels: Mono (although Stereo is fine if you really want it)
Sample Rate: 44.1 kHz
Render Quality: Best
Target Bit Rate: 64kbits/s (128kbits/s if you choose Stereo)
Streaming Option: Fast Start (this is what 'tells' the video to load as you watch)
And yes, I always compress and deinterlace using a dedicated compression program. I use Compressor right now. I might buy Sorenson Squeeze so I can encode to flash. You can achieve really low data rates with high image quality with .flv videos. I have had some people tell me they had to wait around for my videos to load.
Oh yea, and just so that you have something to compare to, my videos are about 40 megabytes, but like I said, it's the data rate of the video that matters, not the file size.
Let me know how things go.
Oh, and no. I haven't done any narrative work, although lately I've really wanted to.