High Color Saturation Pixellation

[simple_simon]

Is there any way to counteract the extreme pixellation that occurs in some videos, especially in areas of high saturation color like red or blue? It's not present in the original DVD but only shows up after encoding. I'm encoding in roughly 25000kps so it shouldn't be a low bitrate thing.

Example:
http://imageshack.us/photo/my-images/829/testmz.png/

[sneaker_ger]

Are you sure this is caused by the encoding and not by the renderer? DVDs use 4:2:0 chroma subsampling and this will look ugly if the renderer does a bad job. It will look better when using good upscaling (like in madVR).