What is Image Smoothing and when should I use it?
Image smoothing allows our decoder to decode in such a way that over-compressed pixels that would appear blocky appear instead to be muted slightly. This type of decompression is much more taxing on the CPU. Therefore, instead of big, offensive blocks, over-compressed video looks muted, or fuzzy. Sorenson Media does not recommend using image smoothing on anything above dial-up modem rates.