Here are my settings. I am using the 64-bit version of HandBrake with the Intel QuickSync hardware encoder. I can convert a high-definition movie with surround sound into something Surface-friendly (MP4 file, 1366x768 H.264 video, AC3 stereo audio) in about 10 minutes using an Intel Core i7-3770T and Windows 7 64-bit.
Save this file as Surface.plist and then import it into Handbrake using the Presets menu.
<?xml version="1.0" encoding="utf-8"?>
<!DOCTYPE plist PUBLIC "-//Apple//DTD PLIST 1.0//EN" "
http://www.apple.com/DTDs/PropertyList-1.0.dtd">
<plist>
<array>
<dict>
<key>AudioList</key>
<array>
<dict>
<key>AudioBitrate</key>
<string>160</string>
<key>AudioEncoder</key>
<string>AC3 Passthru</string>
<key>AudioMixdown</key>
<string>Dolby Pro Logic II</string>
<key>AudioSamplerate</key>
<string>48</string>
<key>AudioTrack</key>
<integer>3</integer>
<key>AudioTrackDRCSlider</key>
<real>0</real>
<key>AudioTrackDescription</key>
<string>Unknown</string>
<key>AudioTrackGainSlider</key>
<real>0</real>
</dict>
</array>
<key>AudioAllowAACPass</key>
<integer>1</integer>
<key>AudioAllowAC3Pass</key>
<integer>1</integer>
<key>AudioAllowDTSHDPass</key>
<integer>1</integer>
<key>AudioAllowDTSPass</key>
<integer>1</integer>
<key>AudioAllowMP3Pass</key>
<integer>1</integer>
<key>AudioEncoderFallback</key>
<string>AC3</string>
<key>ChapterMarkers</key>
<integer>1</integer>
<key>Default</key>
<integer>0</integer>
<key>FileFormat</key>
<string>MP4 file</string>
<key>Folder</key>
<false />
<key>Mp4HttpOptimize</key>
<integer>0</integer>
<key>Mp4iPodCompatible</key>
<integer>0</integer>
<key>PictureAutoCrop</key>
<integer>1</integer>
<key>PictureBottomCrop</key>
<integer>0</integer>
<key>PictureDeblock</key>
<integer>4</integer>
<key>PictureDecomb</key>
<integer>2</integer>
<key>PictureDecombCustom</key>
<string />
<key>PictureDecombDeinterlace</key>
<integer>0</integer>
<key>PictureDeinterlace</key>
<integer>0</integer>
<key>PictureDeinterlaceCustom</key>
<string />
<key>PictureDenoise</key>
<integer>0</integer>
<key>PictureDenoiseCustom</key>
<string />
<key>PictureDetelecine</key>
<integer>0</integer>
<key>PictureDetelecineCustom</key>
<string />
<key>PictureHeight</key>
<integer>0</integer>
<key>PictureKeepRatio</key>
<integer>1</integer>
<key>PictureLeftCrop</key>
<integer>0</integer>
<key>PictureModulus</key>
<integer>2</integer>
<key>PicturePAR</key>
<integer>2</integer>
<key>PictureRightCrop</key>
<integer>0</integer>
<key>PictureTopCrop</key>
<integer>0</integer>
<key>PictureWidth</key>
<integer>1366</integer>
<key>PresetBuildNumber</key>
<string>2013121601</string>
<key>PresetDescription</key>
<string>No Description</string>
<key>PresetName</key>
<string>Intel QuickSync - Surface - no crop, AC3 passthrough</string>
<key>Type</key>
<integer>1</integer>
<key>UsesMaxPictureSettings</key>
<integer>1</integer>
<key>UsesPictureFilters</key>
<integer>1</integer>
<key>UsesPictureSettings</key>
<integer>2</integer>
<key>VideoAvgBitrate</key>
<string />
<key>VideoEncoder</key>
<string>H.264 (Intel QSV)</string>
<key>VideoFramerate</key>
<string>Same as source</string>
<key>VideoFramerateMode</key>
<string>cfr</string>
<key>VideoGrayScale</key>
<integer>0</integer>
<key>VideoQualitySlider</key>
<real>22.5</real>
<key>h264Level</key>
<string>4.1</string>
<key>x264OptionExtra</key>
<string />
<key>x264Preset</key>
<string>medium</string>
<key>h264Profile</key>
<string>main</string>
<key>x264Tune</key>
<string>none</string>
<key>x264UseAdvancedOptions</key>
<integer>0</integer>
<key>qsvPreset</key>
<string>balanced</string>
<key>VideoQualityType</key>
<integer>2</integer>
<key>VideoTargetSize</key>
<string />
<key>VideoTurboTwoPass</key>
<integer>0</integer>
<key>VideoTwoPass</key>
<integer>0</integer>
<key>x264Option</key>
<string />
</dict>
</array>
</plist>