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Most people today seem to stick with WMV since everybody and their mothers can view that format.
As for getting HD, you are absolutely right, most people who advertise having it simply don't. True HD over the internet is a bitch on hard drive space needed and bandwidth required. With the H.264 codec (which is deliciously amazing), you can get HD-quality vids (1280x720) at around 2.75GB or so per hour, or roughly 46MB per minute. Granted, this isn't "true" HD quality, but it's pretty comparable with what your eyes are going to be seeing. You'll see some artifacts (rarely) but this is as close as you can get with internet/bandwidth limitations on the internet.
Oh... about the H.264 codec. I've been encoding video now for over a decade and that codec is awesome, just plain awesome. The only thing that sucks about it is it is one of the slowest encoding processing I have *EVER* dealt with in my entire life. It's speed is ridiculously slow, more than DOUBLE the time it would take to encode a video to DivX or XviD.
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