This is probably getting a bit off topic but I've played around with theora 1.1 and the quality is really not that bad at all. There are some movie trailers online, Tron is one of them, and you'd really swear that you were watching something encoded in h.264 instead. Unless you're comparing frame to frame, it's hard to distinguish between the two. Theora's filesize is a little larger but it's a small concession for an open and royalty-free format.