Yes, we encode it on the fly: Abit I-N73HD motherboard with overclocked Intel Pentium E2160 processor. Working like a charm, about 50-60% loading of the each of processors. Here is my encoding line: (Middle quality) cat $OUT.avi & /usr/bin/mencoder "$IN" -vf scale=512:384 -ovc x264 -x264encopts bitrate=300:threads=auto -oac lavc -lavcopts acodec=aac:abitrate=20 -o $OUT.avi &>$OUT.log
High quality: cat $OUT.avi & /usr/bin/mencoder "$IN" -vf scale=512:384 -ovc x264 -x264encopts bitrate=256:subq=5:8x8dct:frameref=2:bframes=3:b_pyramid:weight_b:threads=auto -oac lavc -lavcopts acodec=aac:abitrate=20 -o $OUT.avi &>$OUT.log
it's interesting... BTW - does the picture's quality change after high quality h264 decoding ? Which bitrate and resolution have the mpeg2 channels ?
Igor