I'm currently using Fair Use Wizard 2.8 (the full version that was free for a limited time) to encode DVD movies for my Zune, along with a few other formats.

Has anyone tried updating the bundled encoders that come with FUW2, and if so, did you encounter any problems after doing so? Some of them are pretty old versions and I'm wondering if newer versions would result in faster encoding and/or better quality.

Also, is the Nero AAC encoder still needed? It prompts you to download it after installing, but it seems to encode MP4 for Zune/iPod just fine even if you don't download the Nero AAC encoder. I haven't done any subjective testing to see if sounds any better with the Nero encoder.