It's somewhat related.

With the built-in player. I have some success in encoding and playing H264 video without stutter or tearing. The result is 300MB for 2 hours of video, extremely compact and efficient. Before you start playing the video, make sure all the background services and networking are turned off. I am also using the fastest MicroSD card I can find (8GB class-6), and a MicroSD adapter. For encoder, I use either FFmpeg from Handbrake or x264 from RipBot264.


Here are my encoder settings:
Video:
Size=400x224, 400x240, 368x240
Ave Frame Rate=256kbps
Max Frame Rate=512kbps
FPS=24
Profile=Base level 3.0
No of R-Frame=1
No of B-Frame=0
CABAC=OFF
Audio:
AAC-LC =96kbps