ageha was here

http://www.mplayerhq.hu/DOCS/HTML/en/video-codecs.html#codec-h264-whatis

H.264 is one name for a new digital video codec jointly developed by the ITU and MPEG. It can also be correctly referred to by the cumbersome names of “ISO/IEC 14496-10“ or “MPEG-4 Part 10“. More frequently, it is referred to as “MPEG-4 AVC“ or just “AVC“.

Whatever you call it, H.264 may be worth trying because it can typically match the quality of MPEG-4 ASP with 5%-30% less bitrate. Actual results will depend on both the source material and the encoder. The gains from using H.264 do not come for free: Decoding H.264 streams seems to have steep CPU and memory requirements. For instance, on a 1733 MHz Athlon, a DVD-resolution 1500kbps H.264 video requires around 35% CPU to decode. By comparison, decoding a DVD-resolution 1500kbps MPEG-4 ASP stream requires around 10% CPU. This means that decoding high-definition streams is almost out of the question for most users. It also means that even a decent DVD rip may sometimes stutter on processors slower than 2.0 GHz or so.

At least with x264, encoding requirements are not much worse than what you are used to with MPEG-4 ASP. For instance, on a 1733 MHz Athlon a typical DVD encode would run at 5-15fps.

This document is not intended to explain the details of H.264, but if you are interested in a brief overview, you may want to read The H.264/AVC Advanced Video Coding Standard: Overview and Introduction to the Fidelity Range Extensions.