Here is the batch file i use to transcode my VC1/h264 to h264 for use on the PS3
Code:
mencoder.exe %1 -vf harddup-ovc x264 -x264encopts crf=18:frameref=3:bframes=3:b_pyramid:direct_pred=auto:weight_b:partitions=all:8x8dct:me=umh:mixed_refs:brdo:bime:trellis=1:nopsnr:nossim:subq=6:level_idc=41:threads=auto -oac copy -of lavf -o "%~dpn1.crf.mkv"
Save that command to a file called ps3.bat or something similar... then drag the mkv that eac3to created onto that batch file....
Sit back and relax, after 6-8 hours you should have a mkv file that can be remuxed to a m2ts (mencoder cannot yet create m2ts containers)
And welcome to the world of HD Video encoding
I have a 2.83ghz Quad Core Intel Q9550 that is baught to its knees with HD content... it stuggles to stay at 10fps.... 12 if easy content, and some content will drag it down to 6-8
When the performance difference between the Q9x50's and the i7's is resonable i'll be down to the PC shop to get one!