Alright.. I must be doing something wrong through my process, cause the quality isn't changing (as far as I can see).
1. Select whatever i'm gonna render
2. File -> Render As
3. Save As Type: Windows Media Video V9 (*.wmv)
4. Click Custom
5. Rendering Quality -> Best
6. Click video tab and change mode to CBR (should I just do CBR or CBR-twopass?)
7. Click bit rate tab and check Internet/LAN, change it to 4 M. (should I leave ISDN checked as well? or uncheck it? it's current rate is set at 500 K)
then I hit OK and render it.
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