MPEG 2 to DivX issue

[1GKar]

I am starting out to convert my TV video collection to DVD disc and have struck a slight issue.

I am capturing using Leadtek's Winfast XP TV2000 Deluxe's default software with the MPEG-2 codec for a smaller file size.

However, I want to convert to DivX and MP3 for better final compression. When I load the MPEG into VirtualDubMod and convert to .AVI there is no video present in either my player (Zoomplayer) or VDMod (only a black screen is present and I get a corrupt or missing codecs dialogue box in Zoomplayer), though the file info states everything is in order.
I can convert to XviD without issue.

Questions:

1) Is this the best sequence to optimise the end file size AND quality? -I want it as close to the original VHS resolution- I don't have the HDD space to begin with uncompressed avi format

2) Any ideas on what would be causing the VDMod issue?

[setarip]

You might try uninstalling (then re-booting) and then reinstalling your DivX codec...

[1GKar]

Thanks Setarip,

I originally tried with 5.0.2 codec, then thought there maybe an issue with the older version so tried with 5.1.1 to no avail.

I have changed my situation and will wait until next year when I have freed up more disc space by burning to DVD my HDD served Divx movies.

One query. It's not that important so don't worry about responding if the answer is no. Are there any MPEG file size issues when using TMPGEnc and trying to cut into smaller segments? I assume the programme is a memory hog because when I attempt to cut the middle out of a two-three hour (about 2GB) file, in the multiplexing stage, it states I am out of memory, even with all other apps shut down. I have 256mb DDR2700. Am looking to increase to 516mb in the near future.

Once again I appreciate the time and effort this site's regular respondents put in.