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I think there might be some confusion.
Virtual Dub Mod is going to give you an avi. That doesn't mean it isn't mpeg-2.
AVI is just the container. It can hold all sorts of stuff from DivX to Huffy uncompressed video.
what overall are you trying to do? Are you trying to make a DVD that will play in a set-top DVD player from an xvid or DivX file?
Are you looking to convert it to mpeg-2 for editing purposes?
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