I am certainly a novice at the fine art of compressing but I used the preset for mp4 in the format tab in Compressor, uploaded the file to Vimeo and it looked great. The file was not compressed very much. It pretty much stayed the same size as the QT movie I exported from FCP. This preset was suggested by David Weiss (thank you David!!)
http://forums.creativecow.net/readpost/200/887346
I don't want to hijack your thread here, but what is the difference between having mp4 compression and a mp4 extension with H.264 compression. Why does Vimeo suggest using H.264 codec but they want a mp4 file?