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Thanks so much for the info!!
I'll give it all a try.  I had no idea one could (safely) set the bitrate that high.
I think the problem i was having was a misunderstanding of Flush Rate.  It seems you're suggesting it should stay high, so that the system isn't trying to write quite so often?  I was assuming keeping the flush rate low would prevent some sort of buffering/cacheing overflow (I kept crashing).
Ok, i'll come back with some firm data once I've tried tweaking your suggestions.   

[There is already a guide for the 600D specifying the best GOP, SLICE, etc. settings for doing H264 with and without audio.]

There is already a guide for the 600D specifying the best GOP, SLICE, etc. settings for doing H264 with and without audio.

Can anyone offer similar advice on settings for the EOS-M ?
Keep in mind, the goal is specifically to use Tragic Lantern to get the most out of H264 video (recommendations for when audio is needed, and for when it is not)?
Any advice would be appreciated; I'm not even sure if bitrate effects H264 video, so a bit in the dark here.
Thanks   

[Can anyone compare the quality of RAW and H264 produced from these two cameras, running ML/Tragic Lantern?]

Can anyone compare the quality of RAW and H264 produced from these two cameras, running ML/Tragic Lantern?

In general, first, with ML settings optimized  (bitrates maxed, etc),
how would users compare the resulting RAW and H264 results on these two cameras?

And, more specifically:
I saw some lovely examples of H264 video shot on a 600D, that looked almost as good as RAW; the comments indicated that using tragic lantern they'd jacked up bitrate (played with Slice and GOP settings too i think?), and were getting something like 90-95Mbps, so the video didn't have nearly the compressed look I'm getting on my EOSM.
I'd really like to have one of my cameras running H264 with audio, while the other does RAW (two camera documentary shoots), so getting the H264 to look that good would be absolutely great.
But my EOSM is limited to 40Mbps, so I'm thinking that's why I'm stuck with so much more in the way of compression artifacts?  So,
WOULD BUYING A T3i GIVE ME A MUCH LESS COMPRESSED-LOOKING H264 video result?   
HOW MUCH DIFFERENCE IS THERE?
Thanks!