I just figured out the answer for your first question  - "Where does that money come from ?" .
0.8 credit is generated for viewing or hitting one page but 1.0 credit is required for getting a single hit to any user's page.

The difference 1.0-0.8=0.2 credit goes the admin.

I think this the potential difference which drives it.If someone puts  money externally into it to increase probability of showing his/her ads,then it also becomes part of the credit-exchange system of btcsurf .

It should be of good brand and should be able to write data to memory card.

I have a question regarding credit policy.

1000 credits = 1 BTC or 1 USD ??

I think there s a problem when starting the auto-surf mode.It initiates with "Bitcoin randomizer pre-launch" page and then crashes.

I created my account.If want to join just now, do me a favor .

Join as my down-line using this referral link

http://btcsurf.com/?ref=5

Seems Impressive.

I just read some parts of the article at slashdot . I think people having become over-cautious to anonymous and untraceable nature of bitcoin.
Every good thing in the world can be used to the worst.

A part from the article --

"The article talks about the untraceable, un-hackable nature of BitCoin. They can't be locked down like PayPal, and the article predicts that governments will start banning them in the next 18 months."

If any of the govt. bans bitcoin,that itself will propel bitcoin's popularity to the masses and it will upon them to think whether it is good or bad .

Another set of comment the articles arising from ignorance --

Cornwallis (1188489) writes: "BitCoin should be banned because we want our currency to be as safe and stable as the U.S. dollar."

jandrese (485) writes:" I could only read that article with the late night salesguy's "These collector coins can only go up in value!" voice, but the content of the article was all about how it's clearly a scam and the author is obviously in on it."

Is there a author ?

I think we need to clear misconceptions .

Sorry I spent all my bitcoins 

Is jamendo.com  already contracted for accepting bitcoins ? I am thinking to do the same.

A group of people can raise funds(on equal basis) for getting a common popular file compressed.The collected funds will be paid to the compressor and the compressed file will be later shared by all fund raisers.

I used that for getting a file video file compressed .

I think with MeGUI you can customize many things .

Payment of 0.99 BTC sent to 1LEH9eyoPjuHtzmFX5SKzhbg8kcrnpyhBr.

Thanks for compressing and uploading.Now you can stop seeding if you don't want to.This time the quality of video was really worth 0.99 BTC, for saving my 1 GB bandwidth and downloading time.

(x264 Advanced Option String)/(Options for the commandline/cli) for the "nextime"

ref=16:bframes=16:b-adapt=2:direct=auto:psy-rd=1.0,0.1:analyse=all:me=tesa:subq=9:merange=64:no-fast-pskip=1:no-dct-decimate=1:trellis=2:b-pyramid=1

Nothing else .I am sorry for that mess .Just let me know when you finish and paste the magnet link like you did previously .

For Motion Estimation Method use "Transformed Exhaustive".

2 means always for Trellis .Use always .

For Motion Estimation Method use "Transformed Exhaustive".

The settings for you are

*Enable 8*8 Transform           Adaptive b-Frames=Optimal                    Partition type = ALL.
                                                      
                                         Adaptive Direct mode=Automatic
                                                                                                  Value for trellis should be 2.
Psychovisual
*Enable No DCT Decimation

Rest all are ok .
Let me know if difference in video tab settings also .

The screenshots which I posted are from handbrake version 0.9.4 .

I took a VLC screenshot .It seems that you have not used maximum x264 settings.At maximum settings it looks very impressive at 392 kbps.
I wanted that highest video specifications .

You can see it for yourself .Here is the original screenshot

@demonofelru
Please confirm the details,I have stopped downloading.

The log file could be easily found.Its a text file and its file-name contains the output filename.

Its 1 O'clock night here so,it may be that I could n't respond your messages untill next 7-8 hours.