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Converting to Xvid of DivX


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I'm backing up my DVD's to my Windows Home Server box, and I'm backing them up as as a .iso or the VIDEO_TS method. They're pretty uncompressed at ~5GB/video, so I'd like to convert them to something else to save on storage.

I used AutoGK to convert it, but the playback on my computer through VLC was TERRIBLE. Does anyone have any suggestions as to how I can compress these videos, yet not sacrifice the video beyond playback?

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