This my first post and I hope it kicks off okay. Anyway this video is in 720p take from a mkv from no limits, and the audio is form axxo originally in ac3. And here are the final specs of the end product: 

General 
Complete name : C:\Users\Shmuel\Videos\Happily_N'Ever_After_HELL_SpOrE\Happily_N'Ever_After.mp4 
Format : MPEG-4 
Format profile : Base Media 
Codec ID : isom 
File size : 2.11 GiB 
Duration : 1h 27mn 
Overall bit rate : 3 470 Kbps 
Movie name : Happily N'Ever After 
Performer : HeL! SpOrE 
Encoded date : 2007 
Tagged date : UTC 2011-07-25 02:26:17 
Writing application : Lavf51.12.1 
Comment : English No Subs 

Video 
ID : 1 
Format : AVC 
Format/Info : Advanced Video Codec 
Format profile : [email protected] 
Format settings, CABAC : No 
Format settings, ReFrames : 1 frame 
Codec ID : avc1 
Codec ID/Info : Advanced Video Coding 
Duration : 1h 27mn 
Bit rate mode : Variable 
Bit rate : 3 300 Kbps 
Maximum bit rate : 4 752 Kbps 
Width : 1 280 pixels 
Height : 720 pixels 
Display aspect ratio : 16:9 
Frame rate mode : Constant 
Frame rate : 25.000 fps 
Original frame rate : 24.000 fps 
Color space : YUV 
Chroma subsampling : 4:2:0 
Bit depth : 8 bits 
Scan type : Progressive 
Bits/(Pixel*Frame) : 0.143 
Stream size : 2.01 GiB (95%) 
Encoded date : UTC 2011-07-25 02:26:17 
Tagged date : UTC 2011-07-25 02:26:17 

Audio 
ID : 2 
Format : AAC 
Format/Info : Advanced Audio Codec 
Format profile : LC 
Codec ID : 40 
Duration : 1h 27mn 
Bit rate mode : Variable 
Bit rate : 165 Kbps 
Channel(s) : 2 channels 
Channel positions : Front: L R 
Sampling rate : 48.0 KHz 
Compression mode : Lossy 
Stream size : 103 MiB (5%) 
Encoded date : UTC 2011-07-25 02:26:17 
Tagged date : UTC 2011-07-25 02:26:17 

Well that's about all there is too it have fun.