h.264 vs. mpeg4
Short summary: If space is a concern, use h.264. If space isn't a concern, use MPEG4 instead, at a higher bitrate.
Since the new iPod can play h.264 video up to 768kpbs or mpeg4 at 2500 kpbs, I tried encoding a music video (Weird Al's "All About the Pentiums", interestingly enough...) from DVD using Handbrake using the max playable-on-iPod bitrate for each encoder. In all tests I used 2-pass encoding. In particular, I was comparing one scene in the video, where you can clearly make out (or not make out, as is the case at lower bitrates) the panels on the ceiling.
The image quality of the mpeg4 is far superior due to the higher bitrate (plus much faster to encode), but the filesize was about 3x larger, as you'd expect. But I was actually quite surprised at the quality difference, since it seemed like everyone was talking about how great h.264 is and all iPod video conversion guides I saw said to use h.264. Even a 1000kbps mpeg4 looked better than 700kbps h.264.
But to be fair, I haven't actually tried any of these videos on an iPod, since I won't be getting my new iPod until tomorrow...
What are everyone else's experiences with these codecs?
PowerMac G5 Dual 1.8 Mac OS X (10.4.3)