I'm transcoding movies that are already in 720p, just in a different container or using a different codec, so the settings for resolution might be a little different.
When you load up Handbrake, I first click on the iPhone preset -- this should load the settings for H.264 baseline profile.
For the Picture tab, I set the "Width" size to 1280 and the "Anamorphic" setting to "Loose." This should grey out everything else, and I leave the "Cropping" to Automatic.
I leave the Video Filters tab alone (for now, still experimenting).
For the Video tab, I set the "Video Codec" to H.264 and the "Framerate" to the same as source. I'm still playing "Quality" setting. So far I'm using an Avg Bitrate of 5250 kbps, with 2-pass encoding.
People say that the constant quality setting produces the best results, but I'm worried that there's not as much control over the bit rate, and I want to be mindful of the 6000 kbps limit of the Evo (if that limit even exists, I haven't experimented with exceeding this threshold yet).
For the Audio tab, I leave the source to Automatic; the Audio Codec to AAC; Mixdown to Stereo; Sample rate to 44.1 Khz; Bitrate at 160. I believe the sample rate and bitrates are flexible though, so you can try other things.
Ignore the Subtitles and Chapters tabs.
I'm still playing with the Advanced tab, seeing whether increasing the reference frames will help or not. But even without that, these settings should produce a decent 720p clip to play on your Evo.
Do be warned though that your movies should not exceed 2 GB, as a FAT limitation on your microSD card.
Hmm.. this is interesting. What leads you to believe this? How can we test for this? Why would HDCP be implicated on 480p but not 720p input over HDMI?