You can correct the audio/video sync issue by making sure the audio and video start at the exact same time on the Timeline. Just click on each, and look at the bottom of the screen for "Selected clip start". Make absolutely sure they both show exactly the same number there. If they don't, adjust the numbers to be identical.
If the actual recording is slightly off, you can shift either audio or video ahead or back, as needed, to make them line up.
The newest Flash video and the newest WMV produce very similar file sizes. If the Flash converter you're using is good, there's no reason to change from what you're familiar with.
A 1.6 GB file, properly prepared and with enough Internet bandwidth, should stream fine. However, streaming files that large might be very expensive—many Internet Service Providers charge based on the total number of megabytes downloaded. If the 1.6 GB collection is in AVI format, converting to either WMV or Flash should greatly reduce the size.
If the size reduction from format conversion is not enough, you would have to look at specific settings, such as audio quality, video resolution, and video bandwidth. Video Edit Magic provides several special WMV profiles for streaming video that you can experiment with. I can't advise you on your Flash converter, which is not a DeskShare product.
Windows Media files can be streamed to the Windows Media Player (on Windows computers) and to various alternatives such as VLC on other platforms. Almost any computer can play Windows Media files (WMV), though non-Windows computers may need a player installed. However, if your hosting provider streams Flash video only, they won't be able to do anything with a WMV file. You should check with whoever will be hosting your video.
If you'd like to stream Windows Media files (WMV and WMA), DeskShare does provide a service called
Video Desk. If you can reduce the video size (our maximum storage is 1 gigabyte) you may find Video Desk a useful tool to solve your problem.
I hope this is helpful.