fearofshorts said:
Use anything with H.264. Preferably in an MKV container, so you can have muxed-in subtitles with the video (and use an open-source container while you're at it).
Watch out with that format. Right now the pandora is unable to play videos at 800x480 at 25 fps with high profile h264 (and therefore, roughfly the DVD size), as in, total frame skip even on cartoons that are much less complex, at 875 Mhz. It only displayed one or two heavily corrupted frames every couple of seconds.
At least not until the DSP is enabled with a kernel update, from after which, either Gstreamer or VLC should fly through those with no problem.
Then again, I hope there are no level related shenanigans and can play unrestricted h264. I hate when my graphic card refuses to play correctly some 1080p videos because it has one more reference frame, or... just doesn't adhere strictly the DXVA standard. Specially since my P4 at 2.6 Ghz can't even touch such videos (it can at 720p, barely ).
Aninhumer said:
The best audio format is AAC, but AFAIK there aren't any good free encoders.
Free as in speech, the only encoder out there is faac and sucks big time, even worse than lame (no pun intended), but as in beer, the Nero aac encoder beats everything out there. Pretty much like x264 for h264.
For now, just use MPEG4 without exceeding the screen resolution. I had some xvid videos that the pandora had trouble to play at stock cpu, but played fine at 800mhz.