> I'll believe it when I see it.

Download something from this page:

http://www.microsoft.com/windows/windowsmedia/musicandvideo/hdvideo/contentshowcase.aspx

I recommend the Robotica one as a quick test.

> (E.g., if I take some POV-Ray video data and compress it - using every 
> codec I could find an encoder for - it always looks awful.

Funny, I regularly encode POV stills using xvid4psp into MP4 format for my 
PS3, it looks way better than any DVD.

> [Although never as good as a commercial DVD - don't ask me why.])

Add motion blur?  Also the DVD standard allows different bitrates, make sure 
you are using the highest one for small animations.

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