I recommend rendering to sequences of PNG image files. The question which codec to use should not be answered at the rendering stage.
[email protected], also known as 720p, is the most common non-interlaced HD format. You can’t go wrong with that. Once you have a PNG sequence in 720p, you can easily derive 480p (DVD), 576p (PAL DVD), YouTube (480x360/270) or any other format from it.
The best file format/codec for web distribution is MP4 (H.264, AAC). It yields good results at low bitrates and will be accepted by all video portals. If you want to host the video on your own server space, consider using Ogg (Theora, Vorbis) to avoid MPEG licensing issues.
What software you use to mix sound file with video, I wish blender could render video with sound instead of rendering a seperate soundfile and video. Windows movie maker is gerat but renders only in wmv file format. how to make it compatible for VCD ?
Blender can render video and audio to the same file, but I recommend using other software anyway because Blender cannot do 2-pass encoding. Avidemux, MEncoder and VirtualDub can turn your PNG sequence/WAV file into anything else.
VCD uses MPEG-1 video. However you will never achieve a crisp look on VCD. I would go for DVD-Video instead.