In some cases it will be usefull to say please encode xvid+ac3 but do not encode h264 and ac3. This is especialy usefull when hardware does support one of the type in one container but not in the other like the xbox360. It is fine if the files are being transcoded but they always lose a bit of quality and it uses up some cpu cycles. I have a file which can't be transcoded by ffmpeg but it works if i do not use transcoding ;)
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