I've added these options in bold vcodec=mpeg4:mbd=1:trell:v4mv
It did improve the video quite a bit. I've seen many various options for lavc. And they're complicated and confusing as hell. I too don't understand those options you listed above
Anyway, I will experiment with all the possibilities and see the results.
Thanks to everyone who replied
PS: If anyone know some additional options for lavc and vf please list them. Thx in advance...