Ryan,
Im looking at the dialog box for the sequence settings, where it specifies how previews are rendered as MPEG I frames. You answered my question tho, that PP will decode the B and P frames depending on where my play head is, and i will see the same quality as the AVC in the sequence.
After looking at Adobe Media Encoder, it looks pretty good from settings and control. Much better than Compressor 3 which I abandoned for Handbrake (I never moved off FCP 7) I still need to do some tests, and will compare perceptual quality and bitrate with Handbrake.
Im shooting at 30fps. for encodes I force an I frame every 24 frames as a rule of thumb. does that sound about right?
dan