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Codecs being the way to get the most quality versus the less data used. But there are sacrifices. In most cases it is processor consumption, so a small net-book may not handle the processor requirements of some of the codecs an so on.
So far I have found H.264 as a good codec, it is primarily used in the early days for mobile video communication mostly due to data compression, and it quality is quite good, although I have primarily used it on my Windows 7 64bit laptop which doesn't hiccup much at all.
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