Ever since the latest version of Handbrake came out, I have been searching for the right settings. I had what I thought were the perfect settings for version 0.93. My initial attempts with 0.94 were not so great. So, I spent some time doing trial and error. I stared out using Apple TV Presets as the base, but was never able to get a video that would load on my iPod. It would play on the iPhone 3Gs, but not an iPod.
My 0.93 settings look great on Apple TV and work on both my iPhone and iPods. My goal was to recreate the same results with the new version of Handbrake. I changed tactics and started using the iPod Touch Preset as a base.
All of these tests were done with the iPhone & iPod Touch Preset as a base. in all of them I raised the resolution to a width of 720.
60%, 720 width- works on ipod and iphone. Decent on Apple TV. Some noticeable artifacts.
70%, 720 width, 5g support- Good on Apple TV, works on iPod. Large file size. 180 minutes=3.5GB
65%, 720 width, 5g support- Good on Apple TV, works on iPod. 180minutes=2.5GB
The front runner so far is the ipod preset with 65% constant quality. I will do a couple of test rips between this setting and the 0.93 settings.