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I think most videos have gone to 16:9 aspect. Multiples of 16 is suppose to provide the best playback quality. So 768x432 would be a medium resolution for your encoded videos. MP4 (H.264/AAC) would provide the best quality for your videos and FLV (H.263/MP3) would provide the lowest quality.
I have no idea what the standard is most people are using. But I would say from this, maybe a 768x432 encoded as MP4 would be your best choice. Video Quality/Bitrate of around 26 and Audio Bitrate around 128.
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