I agree that the requirement is a bit tight for a 3 minute video, but not extremely tight. A 2:21 youtube video I just watched was less than 5.5mb (this was normal quality).
The average 2-hour pirated movie is 5.8mb per minute.
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As an added example my lit class video project was less then 3 minutes, widescreen and it was almost 700 MB in size WITH compression
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Edit: my math was totally wrong, I forgot 30fps. Still, you can do much better than 250mb/minute unless you're doing like 1080p video.
For posterity, here is some math which is now pointless.
Completely uncompressed DVD video data rate:
720 pixels wide
480 pixels high
4 bytes per pixel (1 byte per R, G, and B channels, plus 1 byte for packing)
60 seconds in a minute
EDIT: 30 frames per second
720 * 480 * 4 * 60 * 30 = 2.48gb/minute.