Hi Steelfist,
The templates are nothing more than an old "Illusion"
KVCD is not template related.
It's all about the notch matrix, special tools, and advanced encoding methods/techniques.
All TMPEG templates with KVCD parameters are identical, except for target resolution.
The X3, X2 names, etc., are there for historical reasons.
So think about KVCD as a "method and tools" with an embedded matrix which can be applied to any encoder capable of custom matrixes. Be if for CD, DVD or for streamming applications.
And yes, the notch matrix does make a huge difference, specially in low lit scenes and flat surface scenes.
In short:
1) MPEG-1 with TMPEG will give you the best quality. Better than any other encoder.
2) Any CQ below ~60 or so, with KVCD's notch matrix, to me is not acceptable. Use that as a reference point.
3) The higher the resolution, the better the quality. That is if CQ is at least ~60 on high resolutions ( 704x ) and at least ~67 or so on 352x resolutions.
The templates will not be updated because we published the specifications here:
http://www.kvcd.net/portal/articles.php?lng=en&pg=20
That way anyone can apply the parameters to any TMPGEnc template or any other encoder.
And in the end, you will always be the final judge on your encoded quality
So you'll have to make small test clips to find out exactly what you like best.
The best resolution that we've found for movie time/compression is basically 528(544)x480 NTSC or 528(444)x576 PAL.
And that resolution is already applied to one of TMPEG's templates, which we call KVCDx3, for easy loading.
-kwag