Isn't this forum CRAP ... no one ever answers anything!
My guess is that ESS is a chipset found in DVD Players, so it is best not to use the ESS option when encoding if you want a full range of playback compatibility.
Then again, I am only guessing.
Oldish thread...still...
The guess is almost right. ESS is referring to a chipset in some standalone DVD players that have "mpeg4" support. In particular the Philips DVP-642(A common player) uses it. The ESS chipset is relatively limited, in particular it doesn't support GMC or QPEL so those features have to be disabled to produce content that is playable on players with ESS chipsets. Using the ESS setting does that afaik. So in fact the ESS setting should increase compatibility, but at the expense of some quality improvement features.
I am guessing the quality/speed slider bar does something like adjust the ASP in use but that one I am not certain on.