[Nick White] "I have set the bitrate at 3,000,000 fixed, as I feel that a,fixed bitrate is the best when optimising."
That was a bad "feeling". ;-) A fixed bit-rate is the worst thing for optimization. You want to use a variable bit-rate (VBR) so that more bits can be used for scenes with more details. Adding Two Pass to VBR will give you the best optimization because the first pass creates a "bit-budget" to be used in the second pass that will be more accurate than a single pass can provide.
[Nick White] "The bitrate _will_ set file size, because the smaller frame size will attempt to have more info (less compression/loss) than the larger frame size, for a given CBR."
Yes, the frame size will essentially affect the quality for a given bit-rate. It will take more bits to represent a larger frame and so larger frame sizes will have less quality for the same bit-rate as a smaller frame size.
~jr
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