Keeps the smoothing to the darker areas of the pictures. Gives greater compression without sacrificing visible image quality. Reducing detail on shadows saves bitrate on areas to where your eyes aren't paying much attention. Also, it is good on noisy, blocky dark areas that show up from AVI and some MPEG sources.
Worth a look. I use it quite a bit, as it reduces black and dark colored noise pretty well.
Read the Author's "Quick Cookbook" on Suggestions for Getting Started
http://www.geocities.com/gc_timsara/vdub.html
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