Hmm... you're still talking in terms of 'encode' and 'decode' -- what's your source? If it's anything but a 720 x 480 @ 29.97fps analogue capture, then I suspect your arguments are moot. There is just no way I could cap with Lagarith on my computer. If it's half the speed of HuffYUV but only 30% (at best) smaller, then for the task at hand it really doesn't sound as though it's the right tool.

I'd be interested to see some comparison caps of the jagginess you mention. Can ya post a couple of examples?