you must have set it to uncompressed video(no codec, no compression)
(I’m not an expert on this, so if I use the wrong term or didn’t explain it right…I’m sorry)
You can reduce the file size and keep video quality great…if you set the bit rate just right…
I assume your original 32 minute video, has around 800 kbps…and it’s a 360p or 480p video.
Then you probably only need to set it to 1500-2000 kbps, to make the video not look so pixelated.
Based on my experience the amount of bitrate needed usually depends on the video resolution.
e.g 320x240 video, with 1000 kbps looks alright…but a 1280x720 with the same bittrate will look a bit blurry and pixelated. You may need to set the bitrate much higher. Probably over 4000 kbps for a video with that kind of resolution.
p.s use shorter videos or encode only a tiny part of video, when you’re going to do some tests(change the codec, changing bitrate value, etc)…so that you don’t have to wait long.
http://i.imgur.com/GTBw4.jpg