A method for transcoding from an MPEG-2 format to an H.264 format is disclosed. The method generally comprises the steps of (A) decoding an input video stream in the MPEG-2 format to generate a plurality of macroblocks; (B) determining a plurality of indicators from a pair of the macroblocks, the pair of the macroblocks being vertically adjoining; and (C) coding the pair of the macroblocks into an output video stream in the H.264 format using one of (i) a field mode coding and (ii) a frame mode coding as determined from the indicators.