So, I have a question. How does transcoding work? When I convert a video file from it's native ISO (video stream VC1 and Audio TrueHD) to H265, how does it work? If the CPU usage isn't at 100% am I loosing quality? If I use my computer for other things and therefore use CPU, am I losing quality. In other words, I am assuming that the transcoding is not the same as capturing a stream of video from Netflix (via PlayOn for example) but more of a frame by frame capture of data. Or a manipulation of the ones and zeros that is dependent upon CPU usage (other than speed). Is this correct? Also, what are the benefits of H265 over H264? My understanding is the only difference between the too is that I will get a smaller file with H265. In other words, if I encode a video as both H264 and H265, the H264 will be larger than the H265 but everything else will be the same - no difference in quality. The reason I ask is that H265 is not supported by all players and I just transcoded a movie into H265 and it took 9 hours on a Core i7 3.0 GHz with 16 GB of RAM. Clone BD predicts only 45 minutes for H264. I have lots of videos to transcode and a small increase in files size is worth the faster transcoding time.