I would hope so. The Microsoft Video 1 codec is ancient, and dithers everything to 16-bit colour. I never really cared for Cinepak or Duck's TrueMotion, either, although Indeo wasn't too bad for its time.

DivX has some problems, but when you can get a machine configured to use it properly, it is remarkable. And the software industry is starting to embrace the codec with all sorts of support. Warcraft 3's cutscenes are encoded in DivX, and at least one Personal Video Recorder can now capture video with DivX compression.

I still prefer MPEG-1 for maximum compatibility across multiple platforms, however.