Sqrl on 03 February 2008
youtube videos are crappy looking because they are saved in a crappy format...if you download a youtube video no matter how great of a format you convert to the program isn't going to be able to magically fill in information where there is none.
If you aren't happy with the original video's quality while its on YouTube then you need to find another version of it that is higher quality....if the quality of the YouTube video is good enough then the best you can hope for is to use a format that will not degrade the quality any further.
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