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It sounds like you are referring to the MP4 conversion option in the Windows software. In general, sticking with the 720x480 resolution is the best resolution choice since that will match the resolution the software records in. Higher resolutions can take substantially longer to convert due and may not upscale to any major improvement. The Best quality is also usually preferred to get the closest quality to the original. Usually, you would only need to use a lower quality setting if you have any space limitations, such as for making short snippets to attach to an email.
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