@Tom
To make sure I did another short test encode with the script below, using Nic's Feb.6 build and quant2. All options default except quantization type.
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mpeg2source("C:\NATURAL_BORN_KILLERS\VIDEO_TS\NBK.d2v")
crop(4,12,-4,-12)
Trim(2000,4000)
BilinearResize(512,272)
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SoftMatrix (mpeg-custom
): 12378kb
h263: 13582kb
The results are the same -> very visible edge artifacts and mosquito noise with SoftMatrix.
screenshot from the softmatrix encode: