The only time I really see larger H264 sizes is because they are usually using an HD raw. If you are using a traditionally sized raw with Xvid though, you generally aren't losing much if any quality at all between them.
Anyone who is using a standard 640x480 or like 704x400 raw at 175mb with Xvid and then making a 233mb H264 with the same raw, is either a bad encoder if they think they need it that large, or wasting filespace for no reason.
(Reminiscent of the HQ/SHQ fansub files years ago which were released as bloated 250-300mb files, yet looked the same as ones I could do at 175mb)
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