Well a few more details will help...

It really depends on what your target client is.

I use the following parametres and they give me good results for my PC's and also for a variety of Network Media Players in my house (Zensonic, Ziova & D-Link). They are purported to work OK on the PS3 but I cannot confirm that as I do not have one.

I use the generic.avi.xvid. audiocopy profile with bitrate set at 1100, 2 Pass encoding, 720 x 400 resolution for PAL DVD widescreen source. A 90 minute flik will end up around 1.5Gb.

Please note that you will need to install FFDShow/AC3 Filter on your PC idf you do not have a native DD5.1 card installed and there have been some reports of Vista giving some trouble with 5.1 sound.

Hope this helps. Regard this as a starting point and work from there.