How to improve the quality in this case?

what matrix did you use? you didn't mention one, so i assume you used h263. you could try this: - try x264 - do a comp-check - lower the resolution - have a look at the xvid-presets thread have fun with encoding ;)

1) If it is a FILM footage, try force film in DGIndex. 2) Deblock before crop or resize (dgdecode can deblock in progressive and interlaced mode; pick the right one). 3) If it is an interlaced footage, deinterlace it with proper field order, again, before crop or resize 4) crop and/or resize (you can do them at the same time) 5) optionally, apply some denoising 6) optionally, apply some sharpening (your target bitrate is too low for this). 7) A MUST :- read the XviD Preset thread.

It's a tough source. Definitely resize to 640xwhatever. Definitely enable force film in DGIndex if you didn't already. Also, I would suggest a CQM like Jawor's 1cd, or maybe Sharktooth's EQM-V3LR or ULR. De-noising will probably help a lot. It will slow you down but it will help. Here's a sample (my usual starting place) Code:

With smart ripper, just save a cell, or with range in avisynt then if your clip is all fast motion and not average, give it 1200kb for an average movie of 940.

No one wants to make a try? What's about you, Blue_MiSfit ;)