I have this same “pulsating” problem around keyframes… here goes my workflow which is different:
I use PP3 to edit my HDV footage from a Canon HV20 (MT2 files). I export from PP3 via DebugModeFrameserver through AviSynth into VirtualDub and save a deinterlaced and downscaled image (to 640×360) AVI, using Lagarith Lossless for the AVI. The resulting footage is excellent. (would this method still have the interframe issues mentioned above??)
I import the AVI into Sorenson Squeeze for Flash 5.0.2.8 and I ONLY see these pulsations when I compress with MainConcept H.264 (have tried all available settings and keyframe spacings) – bottom line – the MP4 has pulsations on the keyframes, no matter how far/near they are spaced.
My solution was to use another provided H.264 compressor that was in Squeeze – no pulsations, but the quality isn’t quite as good.
I don’t think this problem is with AE… it’s with MainConcept being used in Squeeze and AE.
Thoughts??