Where will the video be stored online? Youtube? On your own server?
How will it fit into the web page it's being displayed on? Full screen? In a little sidebar?
Will the video ever need to be distributed in any other way, like DVD or Bluray?
it will be on youtube as well as my own server. It will be fullscreen too and wont be distributed through DVD or Bluray.
YouTube will handle SD, HD @ 720p and 1080. There are presets in the Adobe Media Encoder for YouTube. They work really well and you should use the AME to encode all video for the web.