Compressing mkv(Handbrake?)?

Hi There,

I've was trying to backup a video file using Burn at once and foud it coems out in a massive output file in the multiple Gb size (uncompressed I guess). I wanted to compress it because I have seen an MKV before where it has been only about 400 Mb and still been great quality.

After some research I tried Handbrake on the default settings (20 Constant Quality). It came out just under a one gig but the video was visibly streaky, especially when moving.

Any tips for best Mkv results with optimal file size?