Is it possible to convert video resolution within 10.7 without the use of Handbrake.app or other 3rd party software? I'm not allowed to install any apps on this machine so hence not being able to download Handbrake.app
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Yes it's possible, just right click on the video file within finder and choose the encode selected video files.

Slick
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1Very nice find! You might add this tip to http://apple.stackexchange.com/questions/17759/what-tiny-thing-in-lion-makes-you-smile-or-has-caught-you-off-guard – bmike Aug 13 '11 at 12:26
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1Note: This is now under the "Services" section in the menu – James McMahon Apr 02 '16 at 16:22
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If the service is missing, activate it in the System Preferences > Keyboard > Keyboard Shortcuts > Services. – timomeinen Jul 27 '16 at 09:09