I wanted to follow-up to let you know that your suggestions were excellent and helped me find what I think are perfect settings in MC for the Galaxy Tab 2 7.0.
The Tab 2 7.0 has a screen resolution of 1024x600.
Here are the MC settings from the Summary tab:
Mode: Average Bitrate
Bitrate: 2000 Kbps
Bitrate: 128 Kbps
Sample Rate: 44100 Hz
In the Picture tab:
Aspect Ratio: Keep Pixel AR
Crop: Expand to fit
Note 1: Expand to fit works well for videos in 16:9 format, but for 4:3 there are black bars at the sides. I have not tried it yet, but I think Crop to fit might work well for 4:3 on a device that's 1024x600. Also, the TV that I am streaming to -- 42" Samsung LCD -- is closer to 16:9 than 4:3. I'm not sure cropping 4:3 to 16:9 will look very good (heads will be cut off). If a TV show or movie is shot in 4:3, that's probably the best way to view it. In the end, having the image fill the frame in at least one dimension looks great, and having the black bars at the top or bottom is not a problem.
Note 2: In my initial tests, I had Resize set to Original. The Tab 2 7.0 video player has a setting to expand to fit, but it's easier to resize in MC with the Resize setting (1024x600).
Conclusion: The conversions from the settings above look and sound great on the Tab and also when streamed to the TV. I hope others might benefit from my findings.
Thanks again for the help.....