I've been using this for a day or so now and I seriously love it.

@mikkov: I also had problems with that rename line, I just replaced
with
and it worked great. Apparently this is because my home directory and my tmp directory are on different physical drives.

This is *sort of* on topic: I've been doing a LOT of testing for video playback optimization on my n800, and this is the best setting I've come up with so far for 770-encode:
I also include these lines right after options are defined:
With those set, it no longer automatically crops my video (very annoying for movies with subtitles >_>) and it may just be me but the experimental filters seem to work nicely. A note on these fairly high settings, however, is that mencoder is pretty much barely keeping up with the encoding on my Athlon 3500+ with nothing else running (I don't even run Xorg on that machine) and running almost anything else will make the video lag. It does work very nicely for non-realtime encoding though, if you have a slower processor!
If anyone else has done any research in this vein, please let me know what settings you're using. I'm a bit of a videophile so I'm always looking for ways to better encode my videos!

Just for ease of reference, I also recommend checking this out for setting mplayer as your default video player in opera; it just makes the whole video viewing process smoother. I set my cache size to about 4000, which makes it take a little longer to start playing but leads to less jumpyness at the beginning and gives mencoder a bit of a headstart. Also, in the command line he uses for mplayer, "-vo x11 -ao sdl" needs to be removed because it causes problems, and "-fs" doesn't need to be in there, it does the same thing either way.

Anyway, I'm eagerly looking forward to the next release!