This software has been a long time coming, and looks promising.
Finally, industry standard MP4 files with standard MPEG4 encoding, together with high quality audio encoding. Unfortunately, incomplete versions of MPEG4 (e.g. DivX) have become very popular, which has meant that the full capabilities of MPEG4 have not yet been made available for general consumers. The problem now is that these new compliant files, don't play on the old software.
There are a number of MPEG4 encoders/players (quicktime works, but again is incomplete), hopefully with time, more will arrive which offer the feature set that was originally conceived.