What you're doing from your NLE is what you can expect.
If you are ultimately trying to get you file size down for the web streaming. You will get better quality for downloadable streaming content using a professional compression product like Sorenson Squeeze Compression Suite for PC. Compression products provide more effiency at making files smaller like you're needing along with good quality and CODECS designed for delivery. Other tools for PC are ProCoder. It sound like you are on a PC.
Windows Media is a Good format to use for your streaming delivery. Also, I am assuming that you want to post these videos on a web server. For frame size in your compression tool you can use 320 x 240 and if since you don't mind smaller frame sizes maybe 240 x 180. Use 2-pass VBR enocoding to get best streaming quality.
I will note that you do have a lot of variables involved and more work ahead. Downloadable streaming is mainly geared for short form content. 12 minutes might be a bit long for someone to download a streaming video. If it takes too long to download you might consider hosting your videos on a streaming server through a streaming hosting company.
Once you get your compression tool plan to do plenty of testing to get the file size that you want with the quality that your desire for both audio and video.
Last update: 09:37 PM Thursday, October 20, 2005