I am facing too much issues with Producing MP4 H264 codec files with Hardware video encoder enable, it creates poor quality files, only solution is to disable the HW encoding but in that case video takes ages to produce but quality is good !! however I produce very long video files in one shot and speed time and energy saving does matter to me, I have already contacted tech support but they are very lazy in replying or understanding by issues. I have linked below two links, one with poor quality and one with good quality, Ithe good quality is produced with CPU only and bad quality with GPU HW encoder:
1. bad quality video http://www.youtube.com/watch?v=mHmA6oCrOF0 and http://www.youtube.com/watch?v=NXKfELt2zok
2. Good quality video http://www.youtube.com/watch?v=9kI5Kqgvajg
I have also attached dxdiag report of my system for your reference here https://drive.google.com/file/d/0B721YI4zc02aQ1BNWWNlNlRPOU0/view?usp=sharing
thanks
Prash PROHDGaming Subcribe @ http://bit.ly/1650GFv