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Here is what I am using so far:

#!/bin/sh

mencoder -forceidx \
-lavfopts i_certify_that_my_video_stream_does_not_use_b_frames \
-of lavf -ffourcc FLV1 \
-oac mp3lame -lameopts abr:br=56 -srate 22050 \
-ovc lavc \
-lavcopts vcodec=flv:vbitrate=250:mbd=2:mv0:trell:v4mv:cbp:last_pred=3 \
-vf scale=360:240 \
-o $1.flv $1

UPDATE (07-05-2008):

With newest mencoder versions in Hardy Heron (MEncoder 2:1.0~rc2-0ubuntu13+medibuntu1) it seems this script is broken. New version below.


mencoder -forceidx -of lavf -oac mp3lame -lameopts abr:br=56 -srate 22050 -ovc lavc -lavcopts vcodec=flv:vbitrate=250:mbd=2:mv0:trell:v4mv:cbp:last_pred=3 -vf scale=360:240 -o $1.flv $1


This seems to work, still testing.