I use the MyHD MDP-100 for my decoder, The question isn't whether software encoding is good enough, as software encoders are superior to hardware encoders in quality. The real question is: Is there software that makes encoding a simple/painless process, and can the reulting file be played back flawlessly, while retaining as much quality as possible. The answer is that when I was playing with it a little while back, WME9 and Divx do a great job of compressing the files, and the files can be played back smoothly on a relatively stout rig. The process is (or was) a PITA however, with file conversions and MPEG-2 and audio codec conflicts that prevented a smooth workflow. IMHO, WME is the best encoder for HD material if you get the right combination of codecs, conversion utilities and time. At least you get perfect material to work with. The best part is that the "capture" from the MyHD card is a perfect digital copy of the original HD transport stream (OTA only), a plays back locally exactly like the original broadcast with little CPU use using the cards hardware support. The transport streams also convert to MPEG-2 easily. I'll be playing around with it again soon myself