Yes, the Azbox handles that format just fine. For your information, h.264 is a substandard of the mpeg-4 compression specification, and provides better quality compression than mpeg-2 which was standard for the older DVB-S receivers. Providers that use h.264 ( mpeg-4) can effectively get more bandwidth for their money because of the superior compression algorithm. That's the reason we're seeing more and more feeds using the newer standard. You should know, however, that most of the HD receivers support this standard, including the very inexpensive Openbox S-9/Solomend 800/Sathawk 800.