124 views no answer today, it seems to be an interesting question that nobody can answer *but* BST.
What I can say is that mode 1 is the default and preferred one. Some features seem to work only in that mode: Video stats [Alt+3] and ScreenShot [P] for instance.
On my ATI cards mpeg movies can only be seen in mode2.
On my desktop I can watch my latest DivX 5.02 pro movies in both modes, but with TV-out enabled, it depends on the video cards settings, Theater, clone or dual display.
To BST: Did you schedule a web meeting for giving us a course on mode 1 versus mode 2? :lol:
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