this method creates a file of about 5.5mb
Use TMPGenc to make an mpeg file with the following:
Average Bitrate 350kbps
Save the file as MOV0000#.MPG (# being whatever single digit number you want)
On your memory stick create a folder called MSSONY
in that folder create another called MOML001
place your MOV0000#.MPG in that folder and it should play in mpeg format.
It actually took me less time to make and play the movie than it did to write these instructions (I have a template for creating Clie movies using TMPGenc).
If you haven't used TMPGenc before there are plenty of sites out there with lots of good information.
Very funny movie by the way