Help! DVDfab Mobile Settings don't work

I am having the same problem that many others on the forums seem to be having trying to convert to a small file size. I’ve tried changing both the bitrate and the file size but it seems to only want to make a certain size no matter what I set it to. For example if I set the size to 200MB for a 2Hr movie I got a 690MB file. If I try really hard I might be able to get something different but it also is not what I set. From what I’m reading other users had better results with version 5 which unfortunately I don’t have. I would like to buy this software but I need help. Could someone help me figure out some good settings to convert movies to both my wife’s iPhone and my nano? I’ve tried .mp4 and .m4v (H.264)but can’t seem to get the files anywhere near the quality and at the small sizes my friend has gotten with some different software. If you want to know why I don’t use what he did, he can’t remember what he had on his software drive before it crashed.