I am seeking a solution to getting the best transcoding of MPEG2 transport streams to MPEG4. I am not short of processing capacity using a 3.33 GHz Nehalem Octad. My quality demands are rather high because I use a 46" high tech 1080p screen. I have tried various ways to conserve the quality of the stream and get the storage demand down by using h.264. So far none of my experiments have been successfull. A .2mts stream with 14 GB/h is a wonderfull quality but it lacks in storage efficiency. If I could find a way to convert almost lossless to the denser h264/mp4 format I would be very happy.