Yes H264 is the best codec, and x264 is its best implementation right now, so what I know is based on this implementation. It means don't be surprised if you can't do what I do with the one you use. Like the others, it's "only" a MPEG4 profile. And it doesn't look as good as the others (VC1 and MPEG2), it looks the best of all. H264 files don't necessarily need lots of power, it depends on the output resolution. Of course, 1080p output will need lots of power (or assistance from the graphics card). Like all codecs with loss, there is no H264 with zero loss. You will always have loss, even at 5GB/hour ratio. What I would like to know, that I don't understand in what you say, is why you say Blu-ray have 1080x1960 resolution. This is just impossible to me, as I recall HD is 16/9 format, meaning it should be 1920x1080 (known as 1080p). How come BD would then have 1080x1960 on it ? That doesn't make sense at all. And no, movies don't have 1080x2048, that's just impossible too. Even 2048x1080 I can't understand. What bastard format is that ? Are you sure of it ? I think it's wrong.