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Originally Posted by PeterS
MPEG-2 quality it much better than MPEG-4.
The purpose of MPEG-4 is to create a watchable image at extremely low bandiwdth. I have been saying for a while that this is the WRONG codec to use for HDTV. In fact, here is how the codecs were designed.
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I think you're confusing MPEG-4 simple profile (ISO/IEC 14496-2) with MPEG-4 Advanced Profile (ISO/IEC 14496-10, aka MPEG-4 Part 10, aka AVC, aka H.264). MPEG-4 SP is what most on the web are familiar with, in the form of DivX, XviD, etc. MP4 SP was designed to provide acceptable quality at very low bitrates. And I belive it's been shown a few places that MP4 SP doesn't scale well to high resolutions and high bitrates.
Next generation DVD will not use MPEG-4 SP, it will be using H.264/AVC MPEG-4 Part 10. When people say MPEG-4 in regards to next-gen DVD they're talking AVC. AVC by all accounts scales just as well to high resolutions/bitrates as VC-1. Take a look at the monster thread (search for FRExt or JVT and post by and around Tom McMahon).