I've been discussing with someone about the possibility of encoding Flash files using the H.264 codec for significantly improved quality at the same bitrate.

What I'm not clear on is whether, by using h.264 Flash in a tour, I will decrease the number of people who can see the video, and also, what product out there will encode Flash using the H.264 codec. It looks like Sorenson only offers Sorenson Spark or On2 as codecs.

Any help from any of you video gurus?