Need help with settings to encode to MP4 and MPEG 2 with TMPGEnc Video Mast

I have 2 video clips that I want to email to a friend as mp4 files (or should I use another format?). The original size is was more than 100 MB. I used the template settings:




The size of both clips reduced to approximately 70MB each, that is far more than the 5 MB per clip that I want.


I then changed settings:




What settings are recommended to reduce the size of each clip to less than 5 MB?

Another question, since I have previously just used editing programmes with "fixed" conversion settings (mostly Pinnacle and also captured from Pinnacle). To reduce for instance AVI to MPEG 2 for DVD, what are the best settings to use?

I have a Canon Legria HV40, which is a HDV camera and I capture on 1920x1080, "comp out 1080i", which I presume is 1080 interlaced.
I have never been completely happy with the image quality of the DVDs and would appreciate comments about these settings as well.

Thanks