I've used Divx quite a bit. I really like it, but I jack the compression way down for the best quality picture. Every once in a while I'll get a scene that doesn't look good, so I'll resort to the mpeg4 codec for certain scenes. The problem with the mpeg4 codec is that it doesn't handle blues and reds well at all. They typically end up looking very pixilated...especially if they're bright. If you're looking to save space but give yourself the BEST image quality you can get, I'd highly recommend the Huffy codec. It's supposed to be a lossless compression, which means that your image quality isn't suppose to suffer at all. The biggest problems that I find with the huffy codec is that it can run kind of choppy on some computers, and it still requires a good deal of hard drive space...It's still better than uncompressed frames though. I find that I'm using it more and more though. Hope this helps.