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i would imagine that the more compressed you go the worse the picture gets. It's all about how much space you prefer to use. I don't think you'll find one uniform answer. :eek:
 
I just use normal, it works for me. I have my Mini setup as a tv so I backed up my movie library via Handbrake using normal. Looks very similar to DVD quality and takes up about 1gb per movie.
 
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