What about quality after conversion?
Since you are using Movie Factory, I assume you are making a DVD.
DVDs are MPEG-2, so you will have to convert it in any case.
Yes. There will be some quality loss any time you convert from one lossy compression format to another. If you choose a
high bitrate and convert t only once, you may not notice the quality loss.
There is a check-box in Movie Factory that says
Do Not Convert Compliant MPEG Files. If you check that, it will ignore the current
Project Settings and leave the MPEG-2 untouched (unless you mix MPEGs with different bitrates, etc.).
I can't tell you exactly what bitrate to use. You will have to judge for yourself. It depends on the quality of the original, the quality of your TV, and how critical you are.
The maximum video bitrate allowed on a DVD is about 8000kbps. (The actual maximum bitrate limit is determined by the combined audio and video streams.)
Around 6000 kbps is typical for commercial DVDs. At 6000 kbps, you can fit about 90 minutes of video and Dolby (or MPEG) audio on a single-layer DVD. (Your "free" SE version probably didn't come with a Dolby encoder, but MPEG audio is allowed on PAL DVDs.)
If you go as low as 2500, you will notice that it's not "DVD quality".
Here's a handy on-line
Bitrate Calculator.

Warning - Even if you are able to convert the files to MPEG-2, you
may still experience crashing or "sip sync" problems. All of the MPEG formats seem to be troublesome. I've sometimes had MPEG-2 files get corrupted during the editing process. The more compressed the format, the more potential trouble. DivX and Xvid users seem to have the most trouble. (DivX and Xvid are MPEG-4 variations.)
Greetings from Italy.
Ciao! It's always fun to chat with people from around the world. But like most "Americans", I only speak one language.
