The H.264 is a new compression standard designed to be two to tree times more efficient than the MPEG-2 codec that we are using to watch DVDs.
H.264 video will take more space but you will be able to store 30 to 50GB if not even more on HD-DVDs and Blu-ray disks. You need graphics hardware assistance to do the decoding as there is a lot of calculations you need to do in order to have this real-time high bit rate H.264 video decoded. Next generation R520 - aka Fudo - can do it in hardware.
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