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Open file in Quicktime 7

Then go to >File>Export

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By Export

Choose MPEG-4

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Then choose "Options" to set the compression settings

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Choose the regular MP4 not the MP4 (ISMA)

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Select the Video Tab in the Export Settings

Video Format: Choose H.264 from the pulldown menu

Data Rate: 2000 kbits/sec

Image Size: For SD 4X3
Choose 640X480 VGA

For SD 16X9 TBD…

Frame Rate: 29.97

Key Frame: Every 24 frames

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Click on the Audio tab

Set Audio: AAC-LC (Music)

Data Rate: 128 kbps

Channels: Stereo

Output Sample Rate: 48.00

Rendering Quality: Best

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Then choose the hard drive volume and folder to save the compressed file and click "Save"