Okay, I have edited the video... now comes the tricky part.
Which 'Video File Quality" is best to use for playing back on my PC at the same quality level as the original (Video Clip) was done at without taking 20 times the KBs.
Thanks, John

Perceptual 'quality' ? Anytime you compress video, the quality will be less even though 'perceptually' the quality may appear the same or close to the original. Perceived quality will also depend on other factors like resolution and viewing size. If you reduce the image to 320X240 and then view it on a 60" widescreen TV, the quality will look terrible. Take the same DVD and view it on a 25" CRT TV and it would look fine.

For 'best' quality and less size, I would keep the resolution at 720X480 (NTSC) and use MPEG4 or DivX compression for PC playback. You can play with compression levels to create smaller files.

Thank you ggrussell... I will try that.