Use H.264 codec, the best MPEG4 codec in the market today.
2. Set Quality to Best.
3. Set rate control to 1-pass Constant Bit Rate (CBR). So no Variable Bit Rate, no Multipass. YouTube transcoders prefer CBR.
4. Set key frames to every 30 frames or less. The more key frames the more information your video will have. YouTube transcoders loves keyframes. I usually set key frames every 15 frames in my high motion videos, however keep an eye on the file size.
5. Set data rate to 10000 kbps or more, depending on the running length of your video. Again keep an eye on the file size.
6. Set aspect ratio to 640x480. See recommendations for
widescreen.
7. Set frame rate to 29.97 or 30 fps.
8. Set audio compression AAC: 44.1 KHz, 128 kbps, 16 bits, stereo.
9. De-interlace your NTSC or PAL source videos, especially if it's high motion
10. Apply filters to improve the look of your video: a bright/contrast filter and/or an image sharpening filter.