I use Div-X 5.2.1 to encode. It's much better than X-vid (files will be smaller with just as good or better quality. I have come across files on gnutella that are 2 cd x-vid (1300-1500 MB) where I have encoded exactly the thing with Div-X (650-1000 MB) with much better quality. By that I mean that not many would see the difference between my encoded file and a real DVD

Now DivX 6 is out. Haven't tried it yet, but have been told files will be even smaller with the same quality. If X-vid don't better their encodingsoftware it will be out-of-date. Not that X-vid isn't great quality, but the filesize is ridiculous.

most quality videos will be at least 570X270 and also they will be widescreen (very few quality videos are 4:3)