As most know the best way to put video onto the net now days is with FLASH.
FLASH can do H.264 now but I have been messing around with FLASH CS4 and it's encoder and by the looks of it does a great job in encoder files. It will max out all your cores if you are using a QUAD CPU and for long encodes make sure you have a good cooler on you CPU as it will get pretty hot running at max speed.
FLASH CS4 also has this codec called F4V now which the latest FLASH 9+ player can play and the best thing is you can add scene points to it like you can with flv but cannot with H.264.
Anyhow here is a small 2 meg, 30 second F4V clip to show you it's quality.
Its was rendered out as 1 pass vbr 600kbps max.
http://www.hdvunderwater.com/test/test.html
We were down at 100 feet (30metes) and the guy is using a HDCAM in a custom titanium housing.
I am abit wobby as I had a dry suit on and was shooting one handed.