You can define settings for the encoding process under Encoding tools.   
The following check box is available in the Baseline Profile area: 
Deblocking
If this check box is selected, a soft-focus effect is applied to the sharp edges of the macroblocks. You can configure the intensity by using the Deblocking strength slider. 
The following setting options are available in the Main profile area:
Check box
Bidirectional prediction
If this check box is selected, encoding is carried out with the help of B-VOPs. 
Input field
Maximum consecutive B-frames
Specifies the maximum number of B-frames that can be used in a GOP. 
This input field is enabled only when the Bidirectional prediction check box in enabled.
Check box
CABAC
If this check box is selected, the Context Adaptive Binary Arithmetic Coding encoding method is used. 
Check box
Weighted prediction
If this check box is selected, reference frames can be re-weighted during motion predictions. This increases the encoding efficiency especially during cross fading.
Check box
Interlaced encoding
If this check box is selected, interlaced-encoded output material can be saved as interlaced material again. 
Only possible if the source video file is interlaced.
The following check box is available in the High profile area:
8 x 8 Transform
If this check box is selected, the default 4×4 transform used by the encoder is changed to an 8×8 transform. This allows for better compression with high-definition resolutions.
This setting depends on the chosen profile.
 
See also
Encoder Settings
CABAC
Context Adaptive Binary Arithmetic Coding refers to an encoding method for digital video files. CABAC is an integral part of the H.264/MPEG-4 AVC encoding standard. Instead of variable-length bit strings, a different arithmetic encoding method that makes it possible to reduce the bit rate between 10% and 20% (and therefore reduces space requirements) is used.
GOP
A Group of Pictures refers to a group of consecutive individual pictures in the picture flow of a video file. Each movie or video flow consists of consecutive GOP’s. The viewable individual pictures are generated from them.
Macroblock
A macroblock refers to a block consisting of 16×16 pixels, and constitutes the basic unit in the MPEG standard, on which motion encoding is based as well. A macroblock contains information regarding the brightness and color distribution of a video picture.


Encoding Tools