We have been playing around with the conversion settings and are finally quite happy with the results.
Although, these quality results are only for certain filetypes, and if you upload other types you may come across certain problems, such as low quality, or very high filesize.
We are working on these problems and hopefully will have it sorted int he near future.
We suggest that everyone uses either .mov or .mp4 as these 2 both give the best results, and are converting as we want them to (finally).
We know that .avi, .flv and .wmv are not converting as we want them to and you may come across problems if you upload these filetypes.
One of the better conversion programs that we have come across for converting your videos before uploading is StaxRip http://sourceforge.net/projects/staxmedia/ . It is a free open source program that you can use to convert your videos into .mp4 (many more but mp4 suggested).
Site settings are as follows:
Dimensions: 640x370
Bitrate: 2500k-2700k max
Codec: h263
FPS: 30
Audio: 192k AAC (Stereo only. Do not upload 5.1 as video will fail or have no sound).