Originally Posted by Jeff Kleist
On the fly encoding is never a good solution, and you'd probably receive similar results going directly to Blu-ray. You're much better off investing in a computer capture card and doing a multipass encode to DVD if quality is an issue
Oh, yeah. I completely agree. That's what I had been doing. I would capture into lossless HuffYUV with 704 x 480 resolution, then would denoise the video via external filters of AVISynth, resize it to 352 x 480 and feed it into TMPGenc and use maximum quality bit rate. The end result was at half D1 with pretty decent quality that wouldn't even look that it was from VHS.
Now I want to know whether I can do similar thing with higher bitrate using blu ray compatible format. Like does it make sense to still go with MPEG-2 or is H.264/MPEG-4 AVC better?