I should have put the info about what I used to edit, shoot and upload it.
I used a canon XL1 with a shure Beta 58A Dynamic Mic.
To edit I used Premiere pro CS3 and SoundBooth to sort out some audio problems.

Then when I exported it I used the Export media thing in Premiere and saved it as a pal 1024bps wmv I turned up the audio to 192. The resolution before I uploaded is also pal quality.
Over all the filesize is 22mb which is big for a 2m50s film but in todays broadband world its not so bad.

Hope that helps.