The high definition video adoption has been growing rapidly for the last two years. The two high definition DVD formats HD-DVD and Blueray have mandated MPEG-2, H. 264 and VC-1 as video compression formats. The coexistence of these different video coding standards creates a need for transcoding. In this paper, an efficient transcoding algorithm from VC-1 video to H.264 video is discussed. While there has been recent work on MPEG-2 to H. 264 transcoding, the published work on VC-1 to H.264 transcoding is non-existent. There is very limited amount of published work on VC-1. This paper gives a brief overview of VC-1 and discusses the opportunities for low-complexity tools for VC-1 to H.264 transcoding. The paper considers I and P frame transcoding from VC-1 to H.264 and proposes two approaches 1) Low Cost Design and 2) High Cost Design.