H264 is just fine for the 9700, you just can't use advanced profile settings. Depending on the app you're using, yeah, this can be a pain to figure out. IMO, it's worth it to use the H264 codec, since the quality is better / filesize is smaller... even if it does take a couple tries to figure out what settings work.
That video works fine, by the way. It even streams to my 9700 and plays 'live' if hosted on a webserver
