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See also KingJohns Guide re-compressing
Quick access, Virtual Dub > Video > Compression > Codec > DivX ;-)

Select the DivX MPEG-4 Fast-Motion or Low-Motion codec in the Video
Compression window Click on the "Configure" button.
The Fast-motion codec offers better quality in movies with a lot of action
and if you use a lower bitrate. In most other cases, the Low-Motion codec offers
better quality, but may increase the file size.
Keyframes Increases, decreases the time needed to seek to a "keyframe" during
forward/rewind operations this option also influences quality. Leaving it too
high means seeking doesn't work correctly. Decreasing it usually helps. A figure
between 1 and 5 usually works default is 10.
If you are using the
Scene Detect Patch (improved quality), set this to a high value, like 999,
to let the patch auto-detect where it is best to insert keyframes (i.e.. at
scene changes).
Smoothness-Crispness If you set this to 100% means the movie will contain very sharp, crisp pictures,
but will cause skipping. Setting it to a lower value of 10%, will mean the
picture is more blurry, but won't skip.
Data Rate This is kind of difficult, depending on the quality of the source, leaving it at
the default 910 seems to be just fine for most conversions, while 1200 will give
you almost DVD quality (using the low-motion codec + scene detect patch).
A lower value will give a lower file size, and decreased quality, but will
also cause skipping and freezing, where the sound keeps on going, but the video
stops. Setting it too high will mean that your converted video is excellent, but
the size is almost the same as the original VOB, and may also introduce
skipping.
Recommendation 1500-3000 kbps for fast-motion and 1200+ for low-motion
You can use the various
Bit-Rate Calculators to determine which bitrate suits you best, but most
only work if you use the Low-Motion codec, as the Fast-Motion codec's bitrate is
too variable for the bitrate calculators to work properly.
When you're finished, click OK.
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