tmpgenc is what i use to chop and optimize mpeg clips.
You can download it from free:
http://www.tmpgenc.net
As for size of movies - I usually try to limit the total
amount available on any given gallery to around 3megs.
Sometimes I'll do 10 clips, 10 seconds each, where each
clip is around 300K. Other times I'll do 3 clips where
each clip is about 1 Meg, and 20-30 seconds long.
Other times, I do something in between. I haven't
found one to be necessarily better than the others
in terms of selling - which I use depends mostly on
where i want to get listed.
- Johnny Poker