There is no quality degradation with threads anymore in x264. Maybe you're thinking of the old threading scheme from over a year and a half ago, where there was a tradeoff? With the new method, threading neither reduces nor increases quality.
Why wouldn't you recommend MPEG-PS or MPEG-TS, given that the former is the only format supported by DVD and HD-DVD and the latter the only format supported by DVB and Bluray?
At least use "for internet distribution".
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Several implementations of this exist: For x264, there's x264farm (which includes network encoding as well).
There is no quality degradation with threads anymore in x264. Maybe you're thinking of the old threading scheme from over a year and a half ago, where there was a tradeoff? With the new method, threading neither reduces nor increases quality.
Why wouldn't you recommend MPEG-PS or MPEG-TS, given that the former is the only format supported by DVD and HD-DVD and the latter the only format supported by DVB and Bluray? At least use "for internet distribution".