thanks for the info. what tools are most of you using to rip movies to xvid? Approximately, what size files are you generating? My new plan is to go back to xvid with about a 1500 bitrate and mux AC3 audio. I used AutoGK before, but now i have been trying MeGUI since i think im starting to understand all this stuff a bit better and MeGUI give you a bit more customization. The problem I'm having now though is the issue with cropping the screen? I noticed i created a movie with a 720 X 480 resolution - which is the size of a dvd if i'm correct. However when playing it on my widescreen HD tv, it appears that its not filling the horizonal portion of the screen correctly? Do most of you crop out the black top and bottom bars of the films? I compared the ones i did with MeGUI to autoGK and it appears autoGK does do some cropping of the film as well.
As a side note, the 360 is playing 5.1 AC3 audio for xvids correct?