lol, that's true serjer, but there is a free version also of DivX. If money is an object than by all means XviD, although I know a few companies that will be making DivX standard for their standalone players (sony, samsung, philips, aiwa...). The kiss ones support hacking etc, but not sure if the major brands like sony will so as far as compatibility for standalone players go, who knows. Like I said, it can all change. It's like avi vs others, sure there are other things you can use that are better, but as far as universal compliance and compatibility there isn't. Just like MP3s. Can name at least 3 other compression schemes that are better than MP3s but how many players are there for them? Not too many. In the future most likely, and that's when I'll switch.
@celtic_druid, what settings have you been using for DivX? and which version? As far as the blurring goes, you actually want a little bit of blurring (very minute level) so that the character outlines don't have that crappy dot thing going. I don't know if you watch anime, but if you look at One Piece by K-F or practically any other anime, you will notice a lot of tiny odd specks around black lines in general. It's nothing to really get all wined up about, but I don't like to have them. I notice those in all the XviD animes I have.
I must say though, the majority of the DivX encodings I have seen aren't good either lol (especially the fast motion scenes). I don't seem to have those same problems, but could just be how I do the encodings. The XviD encodings I did and other groups are with XviD-04102002-1 by Koepi and official 0.9.2.
As far as methods and settings go, I'm not going to give full scope of that (because I know some groups want to get mine but have been real pricks with me) but I did use same ones by P-A, HQA, Inf-AF-F, AonE.
PS
you have to use filters with DivX to get things to look right also (some of which include a filter to deinterlace properly,smoother, warp sharp, etc ). Also make sure psychovisual enhancement is unchecked and don't bother changing Preproc, QpEL & GMC & B-frames (these are old techniques I know people still do with the new DivX lol).
Anyhow, as I mentioned before, often there isn't too much of a difference, it's just what you like or don't like in something that can make a difference. Really I don't think one is better than the other (at least for now). Both have pros & cons. Some jump on 1 bandwagon, some on the other. I haven't seen noticeable enough differences to switch from one to the other, so until I see a huge gap between either, I think people should just stick with what they like to use and gives them the results they want.