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Short answer : its compressed enough
Corrections to be made : de-saturate the colors a bit. Webcams cannot pickup so much color. Also, if your video guy is any good, try to run a stabilization algorythm on it. The camera moves a wee bit which means someone was either holding it or she walked so heavily it shook the walls. A proper wall mounted webcam wouldn't shake like that.
Frame rate and compression is alright. You may want to add a bit of light flicker as well to give it that el-cheapo webcam look.
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