To each his own. I have very good eyesight and years in computing nudge me with every distortion. I encode at 800x480, h.264 or divx. I usually go with 1024 kbps, but I can and do go higher with scenes that require absolute clarity, like animation. (h.264 requires less bitrate). MP4.

It's less than obvious WHAT is being distorted, but I did notice the *wow* factor at 2500 KBPS versus 1024. I saw non-technical people actually say *wow*. It's a very nice screen and pushing it is a good idea for me.

Oh, and, I limited at 2500kbps because at 3000 and above the spikes in instant bitrate push it over the card max speed and it stutters when first launched. Second open is fine, but you lose the crowd.