So, after a little research I found out that videos on the internet are now getting even smaller... People used to download .avi files but now this .mkv files are the ones to go for. A movie at normally 700MB is now the same quality at 450MB. I tested it by recompressing a movie and right enough, you can't tell the difference. It took about 3 hours to re-encode it. The savings on hard drive space will be phenomenal for anyone who collects movies. The only thing about .mkv files, is that you need a relatively fast computer to play them, on older machines the playback will probably be choppy. They play through a player I use called GOMPlayer, which I found to be the best of the bunch out there at the moment - because it has a lot of filters built in allowing you to adjust sharpness, softness, add noise etc. The program I used to convert .avi to .mkv was called ripbot 264. It's all new to me these .mkv files, but I gather the codec has been on the go for a few years. It uses a combination of codecs like divx, i268 etc in order to get the resulting .mkv file down to a small file. Very interesting.