Raw source was DVD's.
I own R through Stars on Region 2's.
h264 does make a difference on sharpness. I can see the difference myself. I'm not the worlds best encoder and I take advice from others within L-E about how best to filter video.
But in all honesty I care not for whether my encodes are that extra 5% sharper. These are not meant to replace buying the original Region 2 DVD's. As long as its watchable without heavy pixellation or very noticeable artefacts then all is good. If I want to be a quality whore I'll just pop a DVD in the drive :E.
-gumbaloom
PS By comparing sharpness you were making a judgement :P. Oh and I wasn't being defensive. Merely asking that if people wish to draw comparisons on encode quality that they compare the right version