Yes I know. Its still not good enough. It may look good when playing it at its original resolution but as soon as you fullscreen it you'll see blocking & pixelation.
Look, I know you are after a different crowd here. People who only watch porn on thier computer will mostly be fine with the video quality of your clips.
But the true connosieurs who are coming from DVDs won't settle for it. I suggest that you that you offer a HQ tier of downloads (in addition to the regular clips) that encoude the videos at 1800 kilobits/sec or better.