EDIT: it was quite tough finding one solid BPM. 117 sounded fine untill about 01:40:00. i tried adding several red lines however the bpm seems to increase slightly from there on.
I assume a video offset can be used? h264 gives much better quality at a relatively small filesize. I have also changed the aspect ratio to 4:3 to better suit osu's 800px x 600px standard.
<And not to be pedantic, but the name of the song is "Billie Jean" with an ie, not a y... look in the video.>