Compared to what? VCD? SVCD? what average bitrate?
Overall the kvcd templates appear to provide decent quality compared to standard VCD. Most of the quality issues are related to fine tuning of the mpeg-2, VBR encoding to not waste bits, and a higher maximum bitrate. Personally I try and stick with standard templates like SVCD, CVD, and DVD and take advantage of the tools like NoMoSmooth, Blockbuster, and PeachSmoother advanced through sites like this to improve on standards.
But, to each their own. These template do squeeze the format for all it's worth, but sometimes the quality does suffer.
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