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As the lead developer, I can say quite confidently that the encoder matters a huge amount more than the standard.

See:

http://x264dev.multimedia.cx/wp-content/uploads/2009/08/qual...

http://x264dev.multimedia.cx/?p=164

http://x264dev.multimedia.cx/?p=102

As you can see, a bad H.264 encoder (e.g. Apple's) can barely compete with Xvid.

The entirety of my work on x264 is contained in the past 2 years of development. The psychovisual optimizations alone probably account for at least a 50-70% improvement in compression quality.



"As the lead developer..."

Great example of why I love HN (and IRC).




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