First of all make sure that AVI is selected in the top left corner of the screen. Then click Audio Lame (1) and select 128kbps for audio (of course you can select another value if you want). From the drop-down list (2) select the XviD codec and enable the 2nd pass. In Export (3) select YUY2. Now in the Export Settings use a resolution of 640x368 for a 16:9 movie and 640x480 for 4:3 movies. At Zoom select Full and at Resize BiLinear or BiCubic making sure that it's right for your processor. Finally make sure you click the Whole Button (5). Now we are going to set the codec's settings. Click Pass 1 Settings button.
4.3.1
Here we are. Select the Profile you see here (1) and also Twopass - 1st pass in the encoding type (2). Now we are going to set some more settings. Click the more... button next to the Profile menu (1) and have a look below for the right settings!
4.3.2
Here select H.263 in Quantization type (1). Now in the rest settings (2), these are the ones I use. I suggest you use Adaptive Quantization and Global Motion but try Quarter Pixel's effect by creating a small video and decide if you want to use it. As you can see, I am using it. Click OK and close this window and then click Advanced options in the window we saw in the picture above (3).
4.3.3
In this screen select Ultra High in (1) and Mode Decision in (2). A higher value in (2) will create better quality but it will also take much more time, so I do not suggest it. Also select Chroma motion (3). Click OK and close this window and then again OK to close the codec settings window.
You are back in Neoconvert's output settings now. Click Pass 2 Settings.
4.3.4
Leave all the other settings the same, just select Twopass - 2nd pass in the encoding type menu. Now click calc next to Target Bitrate (if you Target Size there click on it and it will change to Target bitrate).
4.3.4
All right in this one first of all make sure the size is the one I show, which is the right one for a 700MB CD (1). Then enter the exact movie length (2) and select the right Mp3 bitrate we set at step 5 (3). Have a look at the average bitrate and click OK. Now in the target bitare box you should see the value that the calc caclulated. If it doesn't work (usually it works OK), enter it manually.
Click OK to close the codec settings and Apply to close Neoconvert's output settings window.