1. What version of the Fraunhoffer encoder does it use?
2. How good is the Encoding, particularly with VBR as compared to LAME?
3. What advantages / disadvantages does it have?
I contacted Musicmatch, and they would not give any answers with regards to exactly what version of the Fhr encoder they use, other than to say that they use several types of encoders, depending on the settings, and that how the Software decides is proprietary information. So I decided to find out by myself:
I used a CD from Jeff Lorber, and recorded it 3 different ways:
Using CDex 1.51:

Notice that the encoder used is LAME 3.92, and the setting I used was VBR 0 (max vbr I think). The majority of the frames were encoded in 192, with an average bit rate of 208.
Next, I used MusicMatch in VBR 98% (almost highest quality):

Here, you can see the encoder type was Fraunhoffer's FastEnc. The bitrate distribution was, in my opinion, much better distributed, and with a higher average (216). I like the fact that for the bulk of the song, he averaged around 224, but dropped down and raised up the bitrate as necessary (nice bell curve).
Finally, just to compare, I used MusicMatch in CBR at 256:

interestingly, the encoder used says "FhG (fastenc OR mp3enc)". I don't know if it means it used a combination of both, or it used mp3enc, or the software was not able to decipher between the two. But sufficeth to say, it is obvious that musicmatch does use different encoding when doing different types of recording settings.
Finally, I gave my friend's a "blind test" of sorts, and had them listen to the tracks (one was the LAME, one the MusicMatch in VBR) and tell me which one sounded better? 8 of 10 selected the MusicMatch
lets see if you can tell them apart
Moderation: Links removed. Let's see if you can read the TOS.
Couple of other observations: MusicMatch recorded the song about 25% faster than LAME. The Size difference was not considerable between LAME's vbr and MM's VBR....but it was considerable when compared to MM's CBR at 256.
