Transcoding quality

[Konstantin Svist]

I just got PS3 transcoding working (thanks for the help, Jens Georg!), 
but the quality is really low.
The input file I'm trying is a 1280x720 MKV, but the transcoded result 
is about 320x240, if that. I don't expect full HD quality (machine 
running rygel is a NAS box with Athlon X2 3800+ dual core), but this is 
barely watchable...

Is there any setting I can change to fix this, or is it a lost cause due 
to lack of horsepower?

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