Video Compression Guidelines for Embedding in PowerPoint

I know this is a bit off topic, but I'm hoping someone out there will have some ideas. :-) I have a video created in Adobe Premiere Pro that's HD quality. I published and uploaded to Vimeo Pro, and it looks great. I then discovered that PowerPoint 2010 and Vimeo embed codes do not get along. Bummer. I have tried a few work arounds, including using the "old embed code," but PPT doesn't recognize it. I also tried inserting it as a Shockwave object using the Developer tab, and it played, but was too glitchy to use.

I had hoped to embed the video and play it from the web to avoid a ginormous PowerPoint file. However, it's not looking like that is an option.

What are your recommendations for cutting down file size while still maintaining the quality and appearance of the video? It's going to be shown over a projector in a classroom.

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