Technically MPEG-2 is inferior to H.264/AVC which in turn is inferior to VC-1.
Also technically with the approriate hardware, VC-1 advance profile, L4 is able to reach a maximum bit rate of 135 Mbit/s at 1920 x 1080 / 60 (1080p)

.
However what is technically true may not be true to your eyes and ears!
I have personally tested out the following 4 titles :
Casino Royale - Codec AVC,
The Prestige - Codec AVC,
The Departed - Codec VC-1 and
Crank - Codec merely encoded on MPEG-2
on a Sony VPLVW100 SXRD Digital (Ruby) Projector with a 100" Screen paired with a Denon AVR-4806CI 1080p receiver on my PS3, at a friend's place. Guess which I personally felt
clearly came out tops and second for PQ -
» Click to show Spoiler - click again to hide... «
No. 1 Crank.
No. 2 The Prestige
So to me, sometimes technical specs should not be the
only concern for PQ, there lots of other factors to consider especially how the film was taken! Personally, its what you see and hear which is most important, not only technical specs. You don't need to believe me or even take my word, just get the 4 titles and compare to see and even hear for yourself!
My offer to
temporarily trade Crank and the other 3 blu-ray titles still holds

if you seriously want to compare!
This post has been edited by yjtay: Apr 15 2007, 12:19 PM