i would think a 720x480 MPEG-2 with a 3000k bitrate should look okay as a 480x360 WMV at 1100k. the shrinking would hopefully take care of the artifacting for the most part.
i did once try one of our videos as an MPEG-2 and when i changed it to a WMV at full size it looked a little off but then i'm not a fan of MPGs anyway. WMVs stream for most people so you don't have to wait for the video to download before you watch it. and although some webmasters still believe that WMV is an inferior video format, my 1600k WMVs look very close to our uncompressed videos where at 2200k there's no visible difference.