I used Sorenson Squeeze, the Flash edition costs $99 (last time I
looked), is easy to use and very powerful, giving a lot of flexibility
in settings so you can optimize depending on the type of video (e.g.
lots of action vs. fairly static) and sound quality you desire. The
new version includes player templates so that you can provide video
play controls right on your web page, though I don't much care for the
styles so don't use them.

See my site for examples; most of my video is in Flash.
best regards,
Deirdré Straughan

www.straughan.com (personal)
www.tvblob.com (work)

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