Thanks for the advice! I changed the objective to fastest time only, and saved 129 frames compared to my first testrun. This movie takes the Rocketeer through the end of Chapter 1, in which he finally obtains the jetpack and fights his first boss. If anyone is interested in RAM addresses used, special moves, or the boss fight, let me know. I didn't want to make a long post that nobody asked for.
http://dehacked.2y.net/microstorage.php/info/1290389869/The%20Rocketeer.fm2
In response to partyboy1a's comment about the stopping after high jumps, it appears to be a game design problem. If the Rocketeer performs a high-jump from his y-axis position to an equal or higher position, there is a small delay as he stops before landing and floats down. If he jumps to a lower y-axis position, this delay doesn't occur. I've tried all sorts of button combinations, including left-right, up-down, second player buttons, etc., but nothing helps.
In regards to the movie length, I have not played through this game since I was a kid. The only complete run I could find online was the below run in 2 parts on youtube. It takes 30 minutes to complete, is not a speedrun, and completes Chapter 1 in approx. 5 minutes, whereas I complete it in approx. 3 minutes. Assuming the same rate of improvement, my movie should end in 18 minutes. However, I think I can get it under 15 since I can manipulate enemies into giving me rocket fuel, thereby substantially improving the run speed. See the two links below for the other run, if interested.
http://www.youtube.com/watch?v=9Bp1tKTdoVk
http://www.youtube.com/watch?v=5KHlMnjHre0
Lastly, I don't know how to turn these files into youtube videos, but when I learn, I'll post in the WIP section.