h.264 does look really great, really really great. We did tests with h.264, VP6S and VP6E we found that right now the best for us was the VP6S took less processing power to view and was the best choice to handle the lowest common denominator of CPU/BW as well. It also in On2 so it did not require the MPEGLA license. We have a sample here at
www.x2kmedia.com it is not the default setting but can be chosen from inside the player.