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conversion

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what is the best conversion format out there-----looking for best quality minimal space....i used to do divx hd but  in newer versions the quality doesnt look that great anymore,,,, most of my music videos/ tv shows on my HD are ipod H264.....any ideas suggestions..i love forums.....gives me ideas i might not have tried but alot of time wrks better for me

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h.264 video in an .mkv container is my format of choice.  It's not as widely compatible as an h.264 MP4 would be, but it lets you keep selectable subtitles and AC3/DTS tracks, and I've found it to generally yield better video quality than .mp4's (why this would be the case, I honestly can't say, it doesn't make much sense to me since the codec is the same).

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what tool would you suggest to convert to h264 in a mkv container with best results

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does handbrake take a  mp4 or avi and convert to the format you mentioned above

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Yes.  At least, I know it does on Mac, I'm pretty sure it does on Windows.

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thnks fot yr all help..for the most part the people here have been very helpful to us novices

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i also wann match the coloring of fire walk with me.....match it to the color of season 1 of Twin peaks.....any thoughts ideas