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Be sure the "cropped" is enabled in both places, in the MPEG settings, as well as the master MMC display settings. Not doing both will encode a funny-size res. Enabling both keeps a master 720x480 with the inner 675x450 (or something close) holding the actual image, and the outside 45x30 or so is black.
Yes, removing noise and unneeded image uses the bitrate on the actual image that is left. The black area takes up minimal resources. It results in a better quality MPEG, yes.
It's a real shame standalone DVD recorders and other capture cards don't have the overscan-obliterating feature.
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