Mini DC to MPG2 or DIVX

[Player1]

Don't know if I'm right here, but I try to ask, so no flames please.

I want to convert my movies from my mini Dv camera directly to mpg2 or DIVX, is there a way to convert it on the fly without to copy the whole avi to harddrive first?

Thanks for your help

 

[celtic_druid]

I believe so, however I have never done it as how are you supposed to do a multipass encode? Also what about editing?