How about recording it in high res and if you decide to mms it, use the built in video maker to reencode and compress it? When you go to export the clip, you have the option of 176x144 to 1280x 720. The lowest one should work with mms.
Hmm, even a 17 sec clips recorded at 1280x720 and then reduce to 176 x 144 is still 1.9 mb...too big for mms. You might have to recompress it a couple of time to get it small enough.