nice test clip. and very hard. the detailed noise like texture and camera motion make this clip very hard. Also, since the clip is so short (27 seconds), VBR won't help much, since our rate control will set the quantizer fairly high to achieve 400 kbps average. In fact, the codec uses only 2 seconds of the 25 second buffer. Perhaps you could argue that it should have used more, but the over-riding parameter is the average bitrate. And, since the filtering is tied to the quantizer, there will be blurring. Without filtering there would have been blocking artifacts. It's a trade-off.
I don't have the source, so I can't compare to other codecs, but I would imagine they would have tough time as well -- just make sure they don't overspend bits, and the resulting filesize is equal or close to equal. Anything else would not be fair..
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