-hq doesnt work? (and a picture quality question)

Hi guys,

I'm trying to get quality as close to to that produced by the on2 vp6  
codec, but havent been able to do that yet. Then I discovered -hq  
(high quality) in http://ffmpeg.sourceforge.net/ffmpeg-doc.html#SEC7  
(which I'd somehow missed for some reason I can't tell)

oh, and before sending this, I grabbed the latest cvs as of 2 hours  
ago, and rebuilt with the same issues :(

So, my questions are thus:

1.) did the -hq get depreciated?

and

2.) (and I know this is a realy big open ended question, so any  
general pointers would be apreciated, I don't expect a free full  
lesson in video compression tech) how do I get the best quality  
possible given a set bitrate and resolution? eg, if I want to stream  
at 768kb/s and have a screen size of, oh, 480x360 how do I get rid of  
(or minimize) all of the pixillation?

Thanks.

-- James

here's my exact command lines and results:

/usr/local/bin/ffmpeg -y -hq -i /Users/jbarros/RENDERALL -pass 1 - 
passlogfile /Users/jbarros/temp.txt -b 768 -bt 100 -s 480x360 -ar  
44100 -ab 128 /Users/jbarros/FFMPEG_HIGH.flv

FFmpeg version CVS, Copyright (c) 2000-2004 Fabrice Bellard
  configuration:  --enable-mp3lame --enable-gpl --enable-faac -- 
enable-x264 --extra-cflags=-DHAVE_LRINTF
  libavutil version: 49.0.0
  libavcodec version: 51.9.0
  libavformat version: 50.4.0
  built on Apr  7 2006 15:44:09, gcc: 4.0.0 (Apple Computer, Inc.  
build 5026)
/usr/local/bin/ffmpeg: unrecognized option '-hq'

------------------------------------------------------------------------ 
----------------------------

/usr/local/bin/ffmpeg -y -hq -i /Users/jbarros/RENDERALL -pass 2 - 
passlogfile /Users/jbarros/temp.txt -b 768 -bt 100 -s 480x360 -ar  
44100 -ab 128 /Users/jbarros/FFMPEG_HIGH.flv

FFmpeg version CVS, Copyright (c) 2000-2004 Fabrice Bellard
  configuration:  --enable-mp3lame --enable-gpl --enable-faac -- 
enable-x264 --extra-cflags=-DHAVE_LRINTF
  libavutil version: 49.0.0
  libavcodec version: 51.9.0
  libavformat version: 50.4.0
  built on Apr  7 2006 15:44:09, gcc: 4.0.0 (Apple Computer, Inc.  
build 5026)
/usr/local/bin/ffmpeg: unrecognized option '-hq'