Re-encoding
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Re-encoding (short: recoding) means to change the codec which is used to store a film. When a file is recoded, the software decodes the program and encodes it again. Often a more efficient codec is used to create smaller files that can be easily archived. For example, a program is broadcasted as MPEG2 with 4000 kbit/s via DVB and one recodes it into XviD with 1000 kbit/s.
Recoding is the part of post-processing your recordings which is by far the most CPU intense. You're lucky if you can encode in real time into MPEG4 with an older 1.6 GHz processor.
Software Examples
MEncoder
Examples of how to use MEncoder for recording and recoding of streams is available from the MEncoder page.
ffmpeg
Please add or I'll do it soon