[mythtv-users] Recomendations for Mpeg2 transcode settings?

[William]

Hello List,

I would like to transcode down some mpeg2 (pvr-250) recordings into (mpeg4,
avi, divx, whatever...) to keep as videos for when people come over. This is
primarily for kids stuff but I would like to keep some adult titles too.
Here is my question. 

What is the best format and settings to give a good reduction in file size
without noticably reducing the quality of the picture? Please note that I am
viewing on a hi-def widescreen monitor so good picture quality is vital. The
format does not need to be directly supported by transcode but it needs to
be playable with mplayer or xine. Avidemux2 comes to mind as an alternative
for doing the conversions.

I tried transcoding using the default mpeg4 settings in myth but the results
were very poor. Very blocky and lots of artifacts. Maybe acceptable for kids
but not personnaly. Any thoughts?

Bill