You need:
- Widescreen. 
- If you don't have widescreen, you need b&w. Either convert it or use
b&w original. Can even be noisy.
- If not b&w, the movie must be "clean", meaning almost no noise.
- As little vegetation and water visible as possible.
- with mpeg2enc I use the -q 14
- you needn't worry about maximum bitrate. It doesn't give you much more
space but uglifies fast movements. Quantisation is everything.

Examples:
I encoded The Usual Suspects. About 110 minutes I think.
Quality above VCD but ugly in several scenes depending on the
background.
I encoded Plan 9 from Outer Space. Almost perfect quality.

Whether or not you choose this kind of solution depends on what type of
artifacts bother you most.
For example I don't encode anime that way because I hate the noise
around fast moving clean lines.
In ordinary action movies this is not a problem, most noticable is the
block-display on backgrounds like sky. This doesn't bother me at all.


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