Like Paul said, it depends on what you want it for.
For online stuff, I prefer h.264 720p. Premiere has this preset listed as "Apple TV 720". I haven't figured out why they call it that, because nothing about it has anything to do with Apple. Whatever, the reason I like it is simply because it keeps the file-sizes down, but seems to look pretty good. And, though youtube and vimeo both handle 1080 footage, in my experience, most viewers' web connection is not fast enough for full HD.
For DVD, you're downgrading the footage, significantly (DVD is SD). Which software will you be using to get it on DVD?