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h264 is the best compression to quality retention ratio, but it's not that universally used. I use it in my members area, and i get fan mail all the time about the quality of them. The same video compressed in WMV to the same file size looks horrible (by my personal standards).
However, not everyone is capable or willing to work with Quicktime, so I've started offering things in the WMV format as well, because it's the most universally compatable format.
My least favorite formats are avi, divx and rm.
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