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Your biggest mistake is using PCM audio. I also find the video bitrate abit high.
Reencoding in VirtualDub at 600kbits XVID and 128kbit MP3 made the file just under 20mb and still quite watchable. Dont have anywhere to upload it though.
You should consider paning and scanning the widescreen stuff to 4:3, and deinterlacing.
Cheers,
Alex
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