Oh wow, wish I could've helped you guys! I encountered the same problem the with the quality:size thing, until I found this awesome free video converter that could actually convert my video into another format and barely affecting its quality! The file size was reduced to 20% of its original size!
Well anyway, here's the link for future use, I suppose
http://www.freemake.com/free_video_converter/
Have we passed the deadline yet? I'm horrible with time zones XD