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This is a question I've struggled with for some years. Every time I posted or asked a "video expert" in private I got different answers.
I personally don't like MPEG. Although they can run on all platforms, I can't find a way to compress them at a decent file size with good enough quality. However, since they run on all platforms we are using MPEG.
I think Windows Media is pretty much the defacto standard. All of the "dumb" surfers already have it installed. I've found that rendering a video into a full sized avi file and then compressing them using Windowed Media Encoder comes out with a good file size and decent quality.
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