Just one more note about using handbrake or other video encoder.
1 pass is enough. There is absolutely no point whatsoever in using 2 pass encoding for short clips.
2 pass encoding is only used when file size is more important than quality (like if you compress a long video to fit a medium with a limited size, like when you record a feature length movie to a DVD). It has negligible benefit except in this circumstance, and takes a LOT longer.