Converting WMVs to MP4

I have a few WMV files I need to convert to an oddly specific mp4 file. I've run it through encoder and no matter what the settings it looks terrible unless I use a massive data rate. At least compared to what the initial file is.

I have also encoded it using VLC and that somehow creates an incredibly good looking file at a very small data rate, but it's not compatible with anything else it seems.

Currently

1280x720 24p
Profile: Main
Level 3.2
Render at Max Depth is checked

VBR 2 pass encoding
Target Bitrate: 3Mbps

For reference VLC manages to make something that looks great at about 180kbps