Many codecs have 'profiles' - these are collections of allowed settings to encode for limited power devices like cellphones, MP3 players, and set-top boxes. For example, iPods with h.264 capability support the Baseline h.264 profile only.
Generally, higher level profiles require more memory and CPU power to decode, and produce better quality.
My general recommendation is to find the lowest common denominator of the devices you are compressing for and use that if they are similar in capability. If some of the devices are much less powerful than others, you might want to make 2 or 3 versions, one for the lower power devices, and another higher quality for the higher power devices.
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