For Video I encode with MPG2 if I'm Finalizing or MPG1 if I'm still editing (so Virtualdub still works). Then I click on expert and select Highest Quality (or somthing like that) then I make sure that I also set the video as CBR. Now for audio I like to set the Bitrate to 192 and then once I have a final version I run that file through Video Enhancer at highest quality settings (and take a vacation with my Laptop).