Here's how to do it:
1. In the Settings window, click the + button on the right-hand side.
2. Select MPEG-2.
3. In the Inspector window, set Stream Usage to Generic.
4. Under the Video Format tab, set the dropdown boxes to NTSC, 29.97, 4:3 and Top First respectively. If any of these are grayed out, you'll need to click the little cog icon on the right-hand side.
5. Click the Quality tab and set Mode to One Pass CBR. Set Average Bit Rate to 8.0.
6. Click the Extras tab and tick the box marked Multiplexed MPEG-1/Layer 2 audio, then select the radio button marked Program Stream.
7. Click the Frame Controls tab near the top of the Inspector pane. Click the Action button and then set Frame Controls to On. Set Resize Filter to Better (change it to Best if you are not happy with the results of Better but this will take MUCH longer). Set Output Fields to Top First.
8. Select the Geometry tab and double-check it says 720x480.
9. Click Save at the bottom.
So that's the video complete. However, for some reason Compressor makes it impossible to set the MP2 audio bitrate from within the GUI, so you're going to need to edit the settings file with TextEdit. Here's how to do it.
1. Close Compressor.
2. Navigate to ~/Library/Application Support/Compressor.
3. Locate the setting you just saved, ctrl-click it and select Open With > Other and navigate to TextEdit in your Applications folder.
4. Look for the part that begins with
<audio-encode. It should be towards the end of the file. Then change <data-rate>384000</data-rate> to <data-rate>224000</data-rate>.
5. Save the file.
6. Relaunch Compressor, apply the setting to your movie and encode it.
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