Avidemux - Main Page
I set it to mp4(xvid) and configure it to constant bitrate of 1000.
Wrap it in AVI and use Lame MP3 as the audio.
Add the resizer to resize it to 480 by whatever is proportionate.
It's much faster than other converters I've used and the result is outstanding.
Did a video the other day, 03:19 music video at a resulting 27.1Mb.