Best conversion setting?

[Nemesh]

I have here a mp4 video file with Enhanced AC-3 audio.
What is the best conversion setting?

1. Use best video quality and 2 pass encoding.
or...
2. Enable Hardware Encoding.
Have a NVIDIA GTX 1050 Ti

When I use step 1 for encoding, the video is corrupted in the first few seconds.
This has already been reported.
But, when I use hardware acceleration (NVIDIA NVENC) this doesn't happen.
It's also much faster then step 1.

What is the best method, step 1 or step 2?
Or do both give same quality?

[modmoomita]

I use both choices 1 and 2 with Short Project encoding, and with Lanczos filter for upscaling and downscaling and never experience any screw up at the beginning of the files. The only failure which often happens to me is at the end if I put in more than 12 title sets in 1 project.

Probably you need to keep upgrading nVidia driver and K-Lite Codec once in a short while.

[Nemesh]

Thats not what I mean.
What is better:

1. Conversion using NVIDIA
or
2. Software CPU, 2 steps

[modmoomita]

NVIDIA - much faster and better quality.

[Nemesh]

Thanks for the fats reply modmoomita.
Is indeed much faster and quality is fine.