Originally Posted by Ireland
I used Handbrake, but it outputs files over 2 GB if you follow the PS3 optimized instructions online.
Handbrake has an option to limit the filesize but the constant quality slider gives the best quality. Just drag the slider down until you get the right balance (20 should be ok). You have to pick a fairly low resolution too but 720 x 404 is a decent enough size and you'll get away with an average bitrate of 1200kbps.
For a 90 minute movie, 1200kbps would be 810MB. That's pushing it to the limit of acceptable quality.
Some movies will come out way less than others because of the content of the movie. An action movie has a lot of fast moving scenes and if there are explosions and jungle scenes, the encoder won't find a lot of redundant information. A romantic comedy might have a lot of those over the shoulder scenes so a lot of the background content is static and low detail so they don't need as high a bitrate.
That's why the constant quality option is good as it adjusts the bitrate depending on the scenes in the movie (variable bitrate basically). However, it is less predictable in terms of output size. If you absoutely want to make sure that movies hit a certain size, just use average bitrate values or the filesize limiter.
The other thing is the H.264 profiles. There are settings that allow you to squeeze the bitrates down but will incease your encoding time a lot. The number of keyframes affects file size too. I like these high as it makes it smoother to scrub through movies but it can add some extra size. Handbrake's default keyframes should be ok.
Try 720 x 404, constant quality 20, if it comes out too large, try average bitrate 1200kbps. Obviously if you have a 2-3 hour movie that will affect the sizes too.