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i usually use bilinear mode when encoding movies for PPC in virtualdub. i found that reduces blocks significantly, although it doesn't eliminate it. the only way to get rid of that, is to have a 24 bit color screen. I've heard there are some 18 bit or even 20 bit screens out there, and, with the power saving WM5 being introduced, maybe we are not too far away from seeing 24 bit screens (wishful thinking?).
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