Generally speaking, a sequence of images is better. If the program fails for some reason, you should have an option to pick up the rendering where it left off, saving time.

If you use image sequences, you want to make sure to use a format that doesn't lose data in the compression. That means that BMP is okay, and so is PNG, TGA, and TIFF. I like PNG best, myself, because it has really good compression with no loss of image data. For this purpose, you should stay away from GIF, because it doesn't have enough colors, and JPEG, because it loses some data and your animation will probably flicker.

Make sure that the program you use to assemble images will do one frame per rendered picture, so your timing is right.

I've never used Modo to render, but most programs I've used that can generate MOV files have an option stored somewhere for the codec to use; check the options and see what you can find. Probaby the most common MOV codecs are Animation and Sorenson, so you should see those as options in the list somewhere.

The animation looks good in terms of quality and brightness. It seemed a touch jerky from here, but I'm away from my normal connection and using a half DSL, so it's probably on my end. I'd love to see the animation do a little more, maybe some motion with the lettering or something; I think that's be fun.