I read a press release on www.Moonlight.co.il that they have an encoder for the Broadband Signal Processor chips from Equator Technologies that produces DVD quality MPEG-2 at MPEG-4 bitrates. Here's an excerpt:

"Moonlight’s MPEG-2 encoder enables full resolution, real-time MPEG-2 encoding that results in superior video quality at bitrates comparable to that generated by MPEG-4. Supported bitrates range from 1Mbps to 8 Mbps. Optimized for execution on the BSP platform, the D1 real-time MPEG-2 encoder uses only a fraction of the BSP-15 device, leaving plenty of computing power to perform other software tasks.
Other key features of the encoders are as follows:
• Constant DVD quality video encoding at sub 2 Mbps
• DVD quality transcoding to sub 2 Mbps bitrate"

This would be terrific!! Does anyone know anymore about this?