The Series 3 does support MPEG4/H.264, it just needs a software update to support it. I think it was in Australia where several years ago their Series 3 boxes were updated to support MPEG4/H.264. But then the S3 is a old product now. I would think they would want thier customers to purchase a Series 4 or Series 5 TiVo. So I don't see much incentive for them to put out an update so the S3 boxes work with H.264.