The artifact problems they were talking about were taken care of in build 0.5.3
There were some problems with "b frames" in the 0.5.3 build but these were taken care of with a patch.
30th September 2005, 12:01
The encoding speed is indeed much faster than before, it's starting to reach the usable state.
The quality seems to be similar than before, except that the video is littered with annoying flashing blocks. They don't last long, so i believe this problem occurs only in the b-frames (or whatever they are called in dirac).
I've attached a patch to block_match.cpp. It slows things down a little, but I think it fixes your problem. Check it out.
3rd October 2005, 12:37
Indeed, the patch has fixed it.
No discussion or feedback on latest build 0.5.4.
The latest version of VLC natively supports Dirac now as well.