If you compress your source video using DivX, then
import the DivX video into Movie Maker for editing,
you will still have the same issue.
Movie Maker can only save movies in WMV or DV-AVI
format.
When you import a video into Movie Maker, whether
it's DivX, WMV, DV-AVI, or MPEG, it is first decoded
inside MM, so it can apply the edits, transitions,
and effects. Then when you save your movie, that
decoded video gets re-encoded into either WMV or
DV-AVI format.
So you are not actually editing a DivX file. You
are editing the decoded video from that DivX file.
Then when you save the movie, you are re-encoding
it to another format. I hope that makes sense.
So the goal is to keep your source video in the
highest quality format possible, until the final
encoding step. That's because each time you
compress (and re-compress) a video, it loses
some quality.
So since MM cannot save directly to DivX format,
the best option is to save it in ITS highest
quality format possible, then use another program
to compress it to DivX.
--
-Bob
____________________________
Microsoft MVP
Windows XP Media Center Edition
www.microsoft.com/ehome