If your source is DV, probably straight PAL DV is going to stream better than anything.
The thing about the compression codecs is that they may save disk space, but then they\'ll turn around and eat CPU like mad on playback.
WMV streams pretty well. MPEG streams really poorly (this is a big bone of contention in the HD world right now, since HD writes an MPEG stream to tape which is fine for tape but virtually uneditable in realtime).
You can, many times, cut the frame rate in half and do fine. I generally opt for the full-res DV stream, just so that when I do spec/approval DVDs for the director, I don\'t have to give them crappy picture quality.
I\'m a bit lost where you said you can halve the frame rate; does this mean you can render at around 15fps? Wouldn\'t this affect your hit points? Actually... I guess not, its still \"frames per second\"...?
DIVX is great. Takes up very little space, looks good and uses maybe 50% more CPU than Intel Indeo... I think it uses around 25% on one of my machines. Can\'t remember what CPU is in it. Either P4 1.6 or AMD around the same