[myTouch 4G Android Development] SoltyPK:
So i once in a while have frame rate issues so i tweaked my options a bit and it has noticeably improved my frames and overall quality. I also run a faux Kernel so my default clock setting a bit higher then stock so that helps as well. but heres what i have so far.

<MediaSettings>
<!-- Each camcorder profile defines a set of predefined configuration parameters -->
<CamcorderProfiles>

<EncoderProfile quality="high" fileFormat="mp4" duration="60">
<Video codec="h264"
bitRate="5000000"
width="720"
height="480"
frameRate="32" />

<Audio codec="aac"
bitRate="96000"
sampleRate="16000"
channels="1" />
</EncoderProfile>

<EncoderProfile quality="low" fileFormat="3gp" duration="30">
<Video codec="m4v"
bitRate="256000"
width="176"
height="144"
frameRate="15" />

<Audio codec="amrnb"
bitRate="12200"
sampleRate="8000"
channels="1" />

</EncoderProfile>

<ImageEncoding quality="90" />
<ImageEncoding quality="80" />
<ImageEncoding quality="70" />
<ImageDecoding memCap="20000000" />

<Camera previewFrameRate="0" />

</CamcorderProfiles>

<EncoderOutputFileFormat name="3gp" />
<EncoderOutputFileFormat name="mp4" />

<!--
If a codec is not enabled, it is invisible to the applications
In other words, the applications won't be able to use the codec
or query the capabilities of the codec at all if it is disabled
-->
<VideoEncoderCap name="h264" enabled="true"
minBitRate="64000" maxBitRate="8000000"
minFrameWidth="176" maxFrameWidth="1280"
minFrameHeight="144" maxFrameHeight="720"
minFrameRate="20" maxFrameRate="32" />

<VideoEncoderCap name="h263" enabled="true"
minBitRate="64000" maxBitRate="6000000"
minFrameWidth="176" maxFrameWidth="800"
minFrameHeight="144" maxFrameHeight="480"
minFrameRate="20" maxFrameRate="32" />

<VideoEncoderCap name="m4v" enabled="true"
minBitRate="64000" maxBitRate="8000000"
minFrameWidth="176" maxFrameWidth="1280"
minFrameHeight="144" maxFrameHeight="720"
minFrameRate="20" maxFrameRate="32" />

<AudioEncoderCap name="aac" enabled="true"
minBitRate="8192" maxBitRate="96000"
minSampleRate="8000" maxSampleRate="16000"
minChannels="1" maxChannels="1" />

<AudioEncoderCap name="amrnb" enabled="true"
minBitRate="5525" maxBitRate="12200"
minSampleRate="8000" maxSampleRate="8000"
minChannels="1" maxChannels="1" />

and results are as followes

General

Complete name : C:\VIDEO0010.3gp

Format : MPEG-4

Format profile : 3GPP Media Release 4

Codec ID : 3gp4

File size : 13.9 MiB

Duration : 13s 122ms

Overall bit rate : 8 903 Kbps

Video

ID : 1

Format : AVC

Format/Info : Advanced Video Codec

Format profile : Baseline@L3.1

Format settings, CABAC : No

Format settings, ReFrames : 1 frame

Codec ID : avc1

Codec ID/Info : Advanced Video Coding

Duration : 13s 122ms

Bit rate mode : Variable

Bit rate : 8 870 Kbps

Maximum bit rate : 9 000 Kbps

Width : 1 280 pixels

Height : 720 pixels

Display aspect ratio : 16:9

Frame rate mode : Variable

Frame rate : 26.673 fps

Minimum frame rate : 5.747 fps

Maximum frame rate : 30.303 fps

Color space : YUV

Chroma subsampling : 4:2:0

Bit depth : 8 bits

Scan type : Progressive

Bits/(Pixel*Frame) : 0.361

Stream size : 13.9 MiB (100%)

Audio

ID : 2

Format : AAC

Format/Info : Advanced Audio Codec

Format version : Version 4

Format profile : LC

Codec ID : 40

Duration : 13s 56ms

Bit rate mode : Constant

Bit rate : 30.1 Kbps

Nominal bit rate : 32.0 Kbps

Channel(s) : 1 channel

Channel positions : Front: C

Sampling rate : 8 000 Hz

Compression mode : Lossy

Stream size : 48.0 KiB (0%)

I pulled this info using Mediacoder and side note AAC is now the default audio encoder it added fine.