Best Profile for h.264 on Zune

Hi I just downloaded the beta with zune support but I found there was no h.264 option since Zune 80 supports this codec natively. I was wondering what is a better profile (better size and quality) to convert DVD to h.264 zune 80 compatible files? Would you use the PSP or Ipod options? Are they the same or different. I heard on another forum that there are different versions of h.264 formats and the Ipod uses a lesser quality version of the format then the zune can handle.

I am getting very confused on how to put small high quality video onto my Zune.