Best Output Setting

Possibly. I'm not sure if I've got this right, but I think the 7mb is the average bitrate, not the maximum bitrate. If this is the case, your scenes with hardly any motion (say 5 seconds of black screen) will be encoded at like 3Mbps (which is fine), allowing your high-motion scenes to get something more like 9 or 10 Mbps (I know there's some sort of bitrate maximum for standard set-top players, but I don't remember the numer)
 
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