Has anyone created video for delivery on CD Business Cards?

I have a client who is requesting this medium. The final video file must be 50MB or smaller. I'm shooting the project in HD and would like to deliver this in 16:9. However, I want to ensure that the video plays smoothly in most computers. The total project is 2 minutes in length. I was going to render using .MP4. Just not sure what bitrate setting to use, etc., to ensure smooth playback. Any advice or suggestions would be greatly appreciated.

Handbrake will give you better quality and smaller size than you can get from Vegas.
Render out intermediate MXF and drop in Handbrake. At 720p you will easily have great quality under 50Mb for a 2min clip.

The final video file must be 50MB or smaller. I'm shooting the project in HD and would like to deliver this in 16:9. However, I want to ensure that the video plays smoothly in most computers. The total project is 2 minutes in length.

A bitrate of 3mbps will fit 2 minutes on a 50MB disk. As Gerald mentioned a 720p24 or 720p30 mpeg4 AVC encode with AAC audio should work reasonably well at this bitrate.