For an hours worth of video to be < 300MB, that's pretty compressed. And DVD video of equal length would be near 2GB. And that's at DVD resolution 720x480 (NTSC - at it's best for DVD). I tend to render 720p at about 20MB per minute. I could get down to 10MB per minute if quality wasn't a concern. 100 minutes, 2GB, 60 minutes closer to 1GB. Basically you're not likely to beat the compression already present. I'm still not sure what problem you're having with said content as is? Flash 10 does the h264 stuff. Unless you're using a VERY old computer (< 1Ghz) and some OLD version of the player. You should be able to play it flawlessly (baring the usual compression quirks). And so should your friends. Maybe not grandma and grandpa on their 486, but still. Any recent < 5yo computer should handle the specs to date okay. It's not like 300MB per hour plus is particularly taxing to any modern hard drive. I can generally do 1GB per 20 minutes over WiFi. Baring dialup which is 10MB - 15MB per hour.