Whats a software encoder vs. hardware encoder?
Software encoders- such as TMPG or the Apple encoder are programs you run on the desktop. Typically they are slower because MPEG-2 encoding is an extraordinarily complex task and will bog down even the fastest processors. Hardware encoders are typically add-in PCI cards that have the encoding algorithms included on-board. These encoders usually work in real-time. You plug in a video cable, hit play and have an MPEG-2 file when you are done playing. The main drawback to hardware encoding is cost.