Thanks for your comments, really appreciate you helping me out!
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This is very bad. x264 Video for Windows is not only old and unmaintained, but H.264 in AVI as a whole is generally considered Evil (TM).
If you have problems post them and get help rather than use something that's inherently broken to begin with
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I did read something about VirtualDub not being best for x264 but I didn't think all that much of it. Am I right in thinking that it is then alot better to be using MeGUI or some other command line based program and creating an .mp4 file?
I do very much appreciate your tips on the settings, however, I would really like to understand what they all mean . For example, I have no idea what a B-Frame is, or for that matter pretty much what anything you mentioned is . There probably is no easy way to learn so I think I will just google everything I can and work from there.
Later on I will try a few encodes with the new settings with a lower bitrate and re-post x264 vs XVid.
Am I right in think that if the bitrate is so high and they are both 'beyond' saturation point, that at a lower bitrate the differences between XViD and x264 will become apparent?
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That's a LOT of filtering for what looked like a pretty clean source. Can you really justify all that, or are you suffering from filteritis?
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I am pretty sure it is mostly filteritis. The main reason for the mass of filters is that some parts of the video have annoying artifacts and dot crawl.
I am not sure of the correct approach to these problems, so honestly I google'd up filters for each type of problem, read their pages for the settings and tried to understand what they meant, then guessed the best settings to use.
I will have more of a play with these filters as well... I bet I could remove some of them ^^;