H.264

[pfc]

Use the codec that gives you the nicest results. Stop worrying about legacy support - you should be doing this for yourself, not for other people.

Using Compressor (which I'm assuming you have) set up a couple of exports - H.264 using the "H.264 LAN" preset, an Xvid compression and MPEG-2. Hit go and leave it running overnight (if you want to be really geeky you could set up a few machines and do distributed compression)