What's better for your online video?

VP 6 is faster ( works on most pcs ) and requires only flash player 8. 

The BAD side of VP6 - it's hard ( or even impossible ) to find free (opensource) encoding solution for it. You need to ask on2.com guys to give you their framework or for personal use you can buy something like "Flix Standard" for $39. That's really nothing even for poor blogger.

H.264 is slower. Only last fast pcs can run it without delays. For example, I've old Celeron 2.4 and it can't handle h264, but good with vp6. But my Core2duo is good with h.264. Another problem of h264 is loosing of smoothness on low bitrate. Picture is quite good, but action is not... if you encode 1280x720 with 1Mbit/s bitrate you can see the problems with slow zooms... it jumps. Usually you can play with complicated settings, but in the end it does not matters. The good enough bitrate for h.264 if you are using 1280 x 720 is about 2-3 Mbit/s.

As far as I know. Vimeo ( vimeo.com - super HD video service ) uses VP6. I think they use about 2-3 Mbit/s bitrate... and it looks good. 

H.264 can provide VERY good results on such bitrates... for lower bandwidth 500Kbit/s - use VP6 and lower resolution. For example 640x360 is good to use VP6. 

Advantages of H.264. You can encode it with FFMPEG ( linux or windows ). You can use 2 or 3 pass encoding to make "super-good" video and 1 pass to make just a video. I strongly recommend 2 pass encoding. If you don't have dedicated server for that, use HeyWatch! service http://heywatch.com/page/home  .

Disadvantages of H.264. It's only for high-end processors and works good only with high bitrate. And end-user needs Flash player 9 or higher ( This is not a problem, they already have. I've checked 100,000 visitors stats - 98% already have Flash 9. )

Good links:

http://vimeo.com

http://on2.com

http://ffmpeg.mplayerhq.hu/

And what do you think about that ?