H.264 encoding with different bitrates...same quality..

Hi there,
while testing for right bitrates, we encountered a strange
problem: Quality of h.264 video doesn't seem to change, even if we
alter the bitrate quite dramastic.
Eg. 640x480 video looks quite the same, whether encoded with
350kbit or with 1000 kbit.
That can't be right, especially because the quality is always
not great.
Any thoughts?
thomas

Video quality is not linear with either bitrate or size of
the video. The final result depends very much on the video
itself--how much motion is involved, for instance.
You might pick a particularly busy section of your movie and
start encoding at an anticipated rate. Then decrease the bitrate by
25kbs, render again, notice the results, repeating again and again
until you see a degradation in quality. Return to the previous
setting and that is your ideal bitrate.

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