Windows Media 9 is excellent in terms of quality/bandwidth, is cross platform, and is free. Real 9 is good too. Both of these are included in Vegas, so you might want to consider using those prior to purchasing a 3rd party encoder (no dis on Sorenson).
EPM, you're right. However, the codecs in Vegas come nowhere near what one can achieve using Sorenson (or Discreet). That's no dis on Vegas, either. I'm one your most ardent users/supporters!
I use Sorenson Squeeze and love it. But I am using it for Quicktime and than QT > flash. i am not using it for any other encoding. I do not use Windows media to encode. I have phased out Real for the most part.