I did heaps of testing, and came to the conclusion that the amount of block noise is GREATLY affected by the quantize matrix setting ESPECIALLY in low bitrate video. hopefully i have soon have an SVCD template up with tweaked quantize matrix settings (something no other template has)
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The other way is to just use CCE - it almost never has block noise, event at bitrates as low as 500 (the lowest CCE will go).
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