I find DIVX kinda disgusting actually personally. Its great for computer viewing, but ick man. MP2 is pretty good, but uaually, I tend to use uncompressed frames, and render to a DV cassette for viewing on a tv. Incidently, a great video compressor is BINK!, I cannot see any loss of quality whatsoever. Xbox supports it and is used they say. Check out www.radgametools.com and try the demo. It deletyes the last 15 frames or so and puts its own logo in, but u can get around that by adding 15 or 20 frames of black footage.