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I you have mpeg files already and you need to watermark it, re-encoding with quality decreasing will appear. If you can get the source digital files (DV, for example) you need to encode them again with watermarking. In my IMHO, MainConcept encoder (not free) will bring the good results at a good conversion speed, can convert to MPEG-1,2. Try to adjust some sliders in the advanced settings to find the optimal speed/quality decision. If you need only MPEG-1 conversion, you can use TMPEG Encoder (Tsunami), mpeg-1 encoding is free. IMHO, It works slower than MainConcept at the same results, but also have a lot of preferences. To watermark your video, simply use logo filter in the virtualdubmod (for mpeg-1), use internal frame server and encode it using software I described above. If you have MPEG-2 interlaced video, will be better to learn more about de-interlacing (in avisynth, for example). All answers on the videohelp.com
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