Never had any problems with the ULead Mpeg encoder myself, in fact I have always been quite impressed with the output quality. Only thing is, it is rather slow. Although to be fair that could be something to do with my neolithic 700Mhz Duron Processor (Upgrading July 2004).
I have read other posts on this forum, and elsewhere, confirming the performance problem.
Many experienced users on this forum like Tmpgenc and Virtual Dub. I am sure a couple of these old stagers will be able to offer far more competent technical advice.
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