right now i'm doing something similar to "forced block skipping". ie, if the difference between a looped compensate and the source is small enough, the looped compensate is used. it doesn't really remove much grain, but after encoding with xvid, the grain is somehow gone. plus it's quite fast
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i'm just doing a test encode with it now.
also, an advantage of looped compensation to me is that i can encode difficult-to-IVTC sources at double framerate, and i don't lose denoise effectiveness from all the duplicated frames.