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Drop the raw footage onto your pc in .AVI format, then import that footage into a solid editing app. (Adobe Premiere etc..). Once editing is complete, fiddle around in these export proximities:
FOR BEST QUALITY
Export Format: Quicktime
Preset: Custom
24 bit color
Video Codec: H.264
Quality: 100
Width: 640 Height: 480
Framerate: default
Pixel aspect ratio: Square pixels 1.0
Bitrate: 14,000 or so
Audio: Apple Lossless 44khz
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