There's no such thing as a best setting for multiple devices. But as long as you adhere to Apples requirements for movie playback on various devices, you are fine.Whatever the term is I wish someone here could assist with a simple guide on the best settings for bringing a dvd movie you own to your ipod classic and possibly an Iphone or Ipad in the future, one movie I tried had good quality, another had blips of small grey line streaks but I used the same settings, the Hollywood industry is lost, if there was a simple and quick way to play the movies I buy on multiple devices I would be buying more movies.
Or you could consider setting up a proper media center that can transcode, so you don't have to think about formats.