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>MeGUI profiles

MeGUI is hardly necessary - x264 has a good set of presets and tunes built in to begin with. --preset veryslow --tune film/animation/grain will already get you very far, beyond that pretty much the two most important things to possibly tweak are the strengths of AQ and psychovisual optimizations (--aq-strength and --psy-rd).

>it is totally within the realm of possibility to put two hours of 1080p content on a single-layer DVD (4.4GB), in a format compatible with any Blu-Ray player out there (AVCHD, a subset of the Blu-Ray standard that accepts DVD as the storage layer), while keeping video quality at a very high level - basically indistinguishable from commercial Blu-Ray discs.

You might get away with an hour of almost-transparent content if it's not particularly bitrate-demanding, but two hours of live action will not look "indistinguishable from commercial Blu-ray discs". 5 Mbps High Profile L4.0 H.264 just won't look as good as ~30-40 Mbps H.264 High Profile L4.1 H.264 commonly found on BDs (unless the BD is really screwed up). At 720p you'd get pretty good results, though.

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