I've got cleaner, and it's really no better even using 2 pass VBR. (and, much slower). Soneson Squeeze and CCE may be slightly, (but infintessimely so) better, (with CCE beign much faster), while Procoder 2 pass VBR on Highest quality, or mastering quality, is the best of 'em all. However, for usaual MPEG2 encoding, you will not be disappointed with Vegas's codec, and encoding. I have all of the above encoders, and have run many different personal visual and speed tests on them. I tend to use Vegas for all but the most demanding MPEG2 encodes, for which I use procoder. Each of the others are used for their own strengths.
The rendering process is controlled by the template you select. The default MPEG-2 template for NTSC for example is set to VBR (variable bit rate) but can be changed from the custom button as can the bitrate values.
TEMPGNC can (or used to, haven't used in a long time, so...) supports two pass encoding. The first pass determines which parts of your video would benefit from a higher bitrate and applies the higher bitrate during the second pass.
It is my understand the MC encoder does both in ONE pass.
Many threads have touched on the issue is such and encoder better than the included MC encoder. A qualifed no in my opinoin unless you're talking a hardware version, which I'll assume is beyond the reach of most if not everyone here unless you got $10K or so to get a really good one. Its like almost everything else, depends on the souce file. So unless anyone making a claim 'mine is better than yours' offers up the source file used so others can render using the encoder of their choice the question is pointless and misleading. The other question that comes up all the time is the MC encoder you can purchase "better" then the included one? No it is DIFFERENT, because SoFo tuned it expressly for Vegas.
To my knowledge, the encoding process to mpg2 has been around long enough that you're not going to find really significant differences when it comes to the actual encoding part of the equation. What differs are the small (?) things, the code that optimizes a particular piece of software, and as BillyBoy wrote, SOFO did a great job tuning, optimizing the encoding process.
I think you might find some encoding software that suits particular purposes, has been optimized for different purposes then the SOFO mpg2 encoder, that might encode faster, or be optimized for really low bitrates, or work better with some types of source files, or as with the streaming codecs, selectively lose some info from the picture rather then take a chance on background artifacts.
As usual you guys did not let me down - so for others that are just embarking on DVD production (with the Vegas Architect authoring program), let me point out that while the default setting on "Render As" Main Concept MPEG2 works nicely, there is a specific "custom" template, "DVD Architect NTSC video stream", which by the specs of it, should deliver a considerably higher quality video.
I'll be (as suggested) trying it out and will report my personal observations back here.
The one area not touched on has to do with encoding at lower bitrates. When SOFO switched over from the Ligos to the Mainconcept encoder 18 months ago, there was much talk about how well the MC codec performed on low bitrate encodes, such as those for VCD, SVCD, and XVCD, as well as low bitrate DVD encodes. Many of the people at that time felt that the MC codec in Vegas 3.x was as good or better than just about anything for high bitrates (say, 6 mbs and above), but could be beaten by TMPGEnc and some of he professional encoders at lower bitrates.
You can search for some of the old posts and see what people were saying.
Of course, that was then, and this is now. The Vegas/MC encoder has been improved, and fewer people are making VCD and SVCD discs now that DVD has gotten cheaper.
Thus, the one remaining issue not yet discussed in this thread is whether the SOFO MC codec in Vegas 4.0 is as good as other encoders for low bitrate DVD encodes, for situations where you want to squeeze two hours or more on a single-sided DVD. I'd be interested if anyone has experience on this, and whether they changed the Vegas encoder settings (other than the bitrate, of course) in order to optimize the results.