Handbreak encoding?

i am a huge quality grub. and i want to rip my movies in handbreak, for best viewing on my iPod clic, and Computer. i personally think that the lowest qwality that still looks spacticular is origonal resolution on the dvd, animorphic, 2-p, h.264, 2000 kbps. the problem is, the ipod only alows up to 1500 kbps. and that looks kinda bad. not the worst, but still bad. i was wondering if there was anyway to make it look still really good for playback on my computer, and the ipod will read it, without redicoulous file sizes. kisses.