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i know about the mass traffic i used to burn 10 gigs every day
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If you submit movie galleries you will burn 50-150gigs/day
And yes you should submit small movies to all those who accept small and then submit big ones to those who only accept big ones. Try and track each one seperately.
MPEG is the only way to go if you are serious.
WMV will get you mediocre listings on 50% of the tgps/mgps
MPEG will get you good listings on most of them.
Also you should be able to get 30 seconds and 2mb and still have HQ movies.