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H.264 offers better quality at the same bitrate compression wise, but it's actually more CPU intensive than the older formats for encoding / decoding. GPU acceleration helps with this, but it has to specifically coded for in the flash file, which also requires at minimum Creative Suite 5.5 (the very latest). It will be a while before those upgrades to the player make their way into the mainstream. They're not super duper simple to implement due to how new they are and most companies still use CS5 or earlier.
Flash Player 11 upgrades: http://is.gd/ZN8Zp7
Flash Player 11 upgrades: http://is.gd/ZN8Zp7





