QUOTE (Kef @ Apr 1 2009, 04:46)

As we all know, quality is subjective. I based my judgement on my own tests. Did you try out the new Tusnelda encoder? I did some testing and compared with both xvid and H.264. Needless to say, I got so depressed by the poor quality (even at really high bit-rates!) that I just stopped testing after 3-4 different video clips.
"You're doing it wrong."It sounds like you should be testing Dirac rather than Theora. Dirac is optimized for visually lossless operation at high bitrates.
At higher bitrates the 1.1 alpha has quality limits from using the old non-uniform quantizer matrices even at the higher bitrates and from the leaky forward DCT. Both of these should be resolved in the 1.1 release, but since they don't have much impact on 'webcasting bitrates' and they are tunings rather than infrastructure they've taken a lower priority. Even with these issues fixed, however, Theora has an upper limit which comes from the minimum quantizer step size in the format.
When speaking of quality for lossy video codecs you really do the world a disservice when you don't discuss bitrate in the same breath. Perhaps that should be a HA forum rule. If you don't care about bitrate, then use dirac in lossless mode and never worry about quality again.
The quality/bitrate curve isn't linear for any codec… some codecs work better at low rates, some at high rates, etc. A 40mbit/sec MPEG2 stream is going to look better than Theora (due to the above mentioned quantizer limitations and fDCT) ... but at 400kbit/sec Theora should be blowing away MPEG2. Theora is designed primarily for low bitrates, … the perfectly acceptable talking head/presentation at 150kbit/sec… general web video at a couple hundred kbit/sec. Decent, but not perfect quality at a megabit or two. If you're looking for something transparent, something archive grade... look to Dirac, as I mentioned. (And before you ask… Dirac does pretty poorly at low rates, clearly worse than Theora).
And also, lets be realistic: Theora is not going to beat MPEG-4 AVC, a more recent, more computationally expensive codec, which incorporates new features that cover the few things that Theora has over prior MPEG codecs (for example, in loop deblocking)… and AVC has non-trivial licensing costs. Perhaps the licensing doesn't matter to you, since you'll only be using video for private archival or such… but do recognize that if you discount the licensing you're discounting the principle advantage of Theora according to its maintainers, so you shouldn't be shocked if you find the format lacking.
Joe-random isn't as sensitive to quality as hydrogen audio users. There are list postings where people are declaring the new Theora to be a match for H.264. These people are nuts but they are also representative of the general public. Theora doesn't need to achieve the same bitrate/quality trade-off as H.264 for the licensing advantages to end up being more important… at least to people whom aren't audio/videophiles. It just needs to not completely suck… and thats a lot of what 1.1 is about.
If you think that it's regretful that people will tolerate less than perfect video quality… then please join in and aid the development of unencumbered audio/video codecs. As it stands today most of the public effort in codec development is going to projects like x264; propping up the quality of codecs owned by others.
QUOTE
I've seen Monty's blog and progress reports
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I know the small team hurts and not having any funding (besides some smaller donations here and there) is of course not good. I ask myself, where are all the Linux distributors? Where are Ubuntu, Novell & Red Hat? Where are all the companies who would benefit from a kick ass patent-free open source codec???
Redhat employs Monty to work on this stuff. (Though RedHat has had him off on another project for the last few months, but he is working on Theora (and other Xiph projects) again now)