We "clearly" have a difference of opinion, because I can "clearly" see the dct blocking artifacts that are more prevalent in your encode than in the one I encoded at 800Kbps. Your encode also suffers more dot crawl and general mosquito noise which is characteristic of MPEG-1 encoding. Look at any edge and you can see the mosquito noise (little dots around high contrast edges). The blocks that you see during high motion scenes in my encode are also shown in your encode as well. Face it, MPEG-1 is basically VHS quality. Go to any encoding site such as
www.doom9.org and they'll tell you the same.