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Having the video at 480x360 and then having the video player scale it up to 600x470 is going to look like crap at a bit rate of 500.. I'd try 2 things.. I'd try having the video at 600x470 or try 300x235.. scaling by multiples of 2 usually yields better results.. then adjust the bitrate... not sure where you got the 500 from, but when I run ffmpeg it didn't encode at 500kbps as expected... I ended up with 768000 to get 768kbps... You may find that 300x235 1024000 actually has a smaller file size and yet looks better than 600x470 512000...
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