After some hours, Robert Swain from the ffmpeg project had done most of his job.

He tested mp4 conversions on several quality levels and commands; some results were incredibly good, using HD original video from vimeo, but as expected, very heavy sized.

He found a good consensus for .avi movies and I personally love the result. Just have a look at the latest Poker After Dark and it is really top notch. 

So now on , I can seriously start working with videos. 

Due to server (possible) overload, I disabled users uploading temporarily. This will be back of course but this is not the most important right now, sorry folks