For a 486 you want to use cinepak .mov files .
I spent months playing with all kinds of video formats for my 40mhz 486 with no mpeg acceleration and 8mb of ram and cinepak with .mov works very well. Use media player and not quicktime to play then back. Keep the bitrate low. Under 1000kbps. The bitrate limitations are cpu based not drive or ram related.
The resolution must be the same ratio as the monitor. So if your display is 640x480 then it must be an easy 4:3 multiple like 320x240 or 160x120. This is because the machine will have a very tough time generating the black bars for the areas on the screen that dont have video information.
Also 24 to 30 fps video will look worse as its trying to fit 30 frames into 1000kbps so each frame will look very compressed. Use 12.5 to 15fps to keep the video quality looking decent.
Pro tip. Cartoons can be rendered out at lower fps without looking very different from the originals. For example the simpsons is actually animated at 12 fps so you can export an episode at a lower rate without much difference.
Using these methods ive exported episodes of anime plus rick and morty episodes that run on my 486 pretty well.
As for audio. Well I havent mastered that yet. Audio requires more biterate. Which hurts either the visual quality, or you have to bump up the bitrate which maxes the cpu. An audio card wont offload the cpu. The cpu still has to process the data in the file. So good luck with that.