If quality is not relevant, that bitrate is OK. If you want better quality, use a higher bitrate and accept the increase in file size.
I guess i'm just trying to figure out the highest bitrate i can go without the end user getting a buffer. Our web guy asked for 400kbps - - i originally had the videos at 700 kbps
700 wouldn't stress hardly anyone's internet. Even old T1 lines can handle that. Basically I think your web guy is just trying to conserve bandwidth obviously he doesn't have much of it or something. He probably doesn't want to increase hosting costs. So he's trying to save by keeping the bitrate really low.
I think you need to ask yourself "who is the audience?"
For those with dial up connections, even 400 will be way too much.
DSL typically starts around 750, so 400 should work (assuming little or no network congestion).
Satellite users will be around the same as DSL users.
Broadband (cable and FiOS) have a much larger bandwidth (typically starting at 5,000 and going up from there), so even 700 is far below what they can theoretically handle.
As a reference, Netflix streams HD movies at about 3,200 and Hulu at about 2,500. So...400 is very low by comparison.
About 80% of U.S households have broadband Internet, so use that when you decide if broadband alone is the market you're after, or if you want to include DSL and sattelite users as well.