How to best create audio for podcast/stream?

Situation is:

  1. A DVD of a 2hr+ meeting (no music, just talking) is the basis…
  2. Want to create a file that would be suitable for downloading (even on dial-up) -or- be able to be streamed instead…whichever is better solution
  3. Have extracted a 3min VOB as a sample and used BeLight to convert to MP3
  4. Any software to be used must be FREEware…and W2K, not XP!

What I’m looking for:

  1. Is MP3 the best compatible format for this?
  2. Can it then be streamed, or how does one do so?
  3. What settings should I make in BeLight or alternative to best reduce file size but keep some quality…remember, it’s just speech so not that critical.

I think that’s about it…I’ve looked at all prior threads that seem to apply but no good answers found…