Supported Sources:

• VIDEO_TS folder, DVD image or real DVD (unencrypted -- CSS is not supported internally and must be handled externally with third-party software and libraries), BDMV folder (unencrypted), and some .VOB and .TS files
• Any multimedia file it can get libavformat to read and libavcodec to decode.

Outputs:

• File format: MP4 and MKV
• Video: MPEG-2, MPEG-4, H.264 or Theora (1 or 2 passes or constant quantizer/rate encoding)
• Audio: AAC, HE-AAC, AC3, MP3, Vorbis, FLAC (16-bit, 24-bit) or AAC, MP3, AC3, DTS and DTS-HD pass-through (supports encoding of several audio tracks)

Misc features:

• Chapter selection
• Soft subtitle support (DVD/VobSub in DVD/MKV/MP4, Blu-ray/PGS in BD/MKV, SRT files, SRT/UTF-8 in MKV, ASS/SSA in MKV, TX3G/3GPP in MP4 - DVD/VobSub, Blu-ray/PGS and ASS/SSA subtitles can also be burned-in the picture)
• Picture deinterlacing, cropping and scaling
• Grayscale encoding

• Intel QuickSync Video Encode / Decode support.
• Windows only currently. We hope to bring this to Linux in the future but not for 0.10.
• Hardware Decode support via DXVA (Experimental - Windows Only)
• Decoding of some H.264, VC1 and WMV content via the GPU.
• Can provide a small improvement on slower hardware. Not suitable for fast CPU's
• Choice of Scalers
• Lanczos
• This is currently Handbrake's default scaler and will remain so.
• Bicubic (OpenCL) (Experimental)
• Available on the Command Line (All Platforms) and Windows GUI. (Mac / Linux GUI's will come in a later release)
• Currently only available in OpenCL form so requires a AMD or Intel GPU supporting OpenCL 1.1 or later. Nvidia GPU's are not currently supported.
• When downscaling, up to 5% performance improvement can be achieved. No benefit when not downscaling.
• Small loss in quality over the Lanczos scaler.
• Denoise
• hqdn3d filter now accepts individual settings for both chroma channels (Cr, Cb)
• New NlMeans? denoiser. This is very slow, but results are significantly better than hqdn3d.
• Presets
• Added Windows Phone 8 Preset
• Updated Libraries
• x264 r2479-dd79a61
• Libav v10.1
• libbluray 0.5.0
• Libavformat is now used for muxing instead of mp4v2 and libmkv
• "Large File Size" checkbox has now bee removed for mp4, as the new muxer will transition to 64bit files automatically.
• mpeg2dec has also been replaced in favour of using libav
• The LibAV AAC encoder is now the default as FAAC has been removed.
• This encoder is adequate for most, but until it improves a bit further, we have enabled support for the FDK-AAC encoder also.
• This FDK option is a temporary measure until the LibAV encoder improves.
• Note that FDK-AAC is much slower and will likely bottleneck the encode process, but will produce better quality audio.
• H.265 encoder
• Using x265 v1.4
• This encoder is still early in it's development, so is missing many H.265 features and optimisations.
• Added VP8 Encoder (using libvpx)
• Available in MKV files only.
• Removed mcdeint deinterlace and decomb modes. This relied on the snow encoder in libav which has been was removed by upstream.
• Bug fixes and Misc Improvements

• Build system updates to compiled under OS X 10.9
• Automatic audio and subtitle track selection behaviours which can be stored per preset.
• Improvements to Auto-Naming feature.
• Misc UI enhancements.
• Bug fixes

• Basic support for return codes from the CLI. (0 = No Error, 1 = Cancelled, 2 = Invalid Input, 3 = Initialization error, 4 = Unknown Error")
• Bug fixes and Misc Improvements