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I prefer doing my encoding on my desktop because of the great apps that I can cut and encode, if you are doing it server side you need the absolute best parameters to get it how you want and if you are a noob at that its gonna be tough.
I usally download members area full vids, then cut it down to a 1-2 min clip, usally a good part in the video, the encode it with adobe media encoder or video charge, always have better results.
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