Thanks again Mark, but I am still left wondering how "Mr. Deity" gets such good quality when I am not.

This blog article recommends adjusting the bit rate to the highest that produces a video under 100MB
http://ellingtonmedia.com/blog/2007/...youtube-video/

This person is using 2000Kbs and again the "H.264," and again getting a very good result.
http://www.youtube.com/watch?v=pzE1oiZl7VE

Both the blog and the videographer above, contra Mr Deity, recommend resizing to the YouTube size. That sounds sensible but Mr. Deity's video quality is the best I have seen.

By the way do you know which of the two Vegas AVC/ACC formats, Sony or Main Concept, comes the closes to h.264 / Youtube?

Tim