Basically, 'better codecs' do higher compression while losing less data. As the codecs become more advanced, the computing power needed to _decode_ the data increases. There are certain tricks a developer (in this case Apple) can do to improve the playability of such codecs on older hardware, but I guess if you're unlucky with the support of MPEG-4 (and Xvid and DivX and 3ivx etc.) on an iBook G3/600 (and I _wasn't_ quite happy with that back on my iBook G3/800), you'll not be happy with H.264 on that iBook, either. To some degree, H.264 overcomes these issues. Yes, the codec is very scalable, which means you can generate H.264 movie files that look good on even a mobile handset and you can generate H.264 movie files that look very good on HDTV or higher resolution hardware and everything inbetween. The _problem_ is: You'll need separate files for different hardware, AFAIK. That high definition encoded movie file will still take up a few hundred megabytes (or even GB, depending on quality and movie-length, of course). And the iBook would, although _playing_ the movie at a lower resolution, have to handle too much data at the same time, which will result in skipping frames, choppy sound etc. - just like it does with MPEG-4 (and derivates) type files above a certain data-throughput.