I have a video which is 2 minutes and 20 seconds and after I render it with the settings of 512k the final video file is 8.21MB. The quality is not the best at 720x480 resolution and it takes 40 minutes to render. How can I make the file size smaller and the quality better?
You're going Mpeg? Quicktime? AVI ?
In these cases there's a "Custom" option in the Render window. Switch it on and play with the parameters. Just render a small part and compare before just to be sure about file size and to get an idea about render time/ final quality / etc...
That sounds about right for the size. What's the resolution. Higher res means you need a higher bitrate to look good (ir a file at a res of 320x240 @ 512k will look better then one with a res of 640x480 @ 512k).
I guess it depends on what your target it. If you want to place it on the net for friends (and you don't have space/broadband) you'd want 320x240 @ 100 or 256k. Don't except any miracles though. Low res/bitrate = low quality. Hih res/bitrate = high quality,
The usual way to figure out what to do is take a short (15 second) representative clip and render it at various resolution/bitrate combinations, then view it on the platform (PC, TV, etc.) that the final audience will use. For WMV, where size is an issue, I would suggest exactly the combinations that HappyFriar has already suggested, i.e.,:
320x240 at 256k
320x240 at 512k
640x480 at 256k
640x480 at 512k
You can also try different frame rates. If you can live with 15 fps, then this will reduce the file size without requiring a reduction in either pixels or bitrate.
Thus, you have three "dials" to play with: resolution, bitrate, and frame rate.