Ok I tried this program out and so far its looking promising. One big problem I have is the way it sets the aspect ratio of the movie. Is there anyway of turning the final movie to use the same aspect as the original? the first attachment (original divx) shows the original aspect and most movies use this aspect. The second (copyToDVD converted) shows it as 16:9 but the picture is obviously squashed.

Since Divx/Xvids are in avi format why not convert it in Winavi to DVD format and then burn it to whatever you want. Winavi allows you to change the aspect to either 16:9 or 4:3 and it will show you which one it is already in.

It looks like it has been encoded for an anamorphic DVD. If so:

* When you set a DVD player to output to a 4:3 (standard) screen it will re-aspect to the original size (which I suspect is not 16:9 but 2.35:1).
* When you set a DVD player to output to widescreen, and you watch it on a standard screen(4:3) it will look wrong like your second image.
* When you set a DVD player to output to widescreen AND watch it on a widescreen, the image will be magnified horizontally to return the proper aspect ratio and almost fill the widescreen.

However, I don't think it makes sense for the app to encode a DivX/XviD to anamorphic unless the 'extra' vertical resolution (i.e. the anamorphic data), was present in the AVI in the first place.

Which version are you using ? because now the aspect ratio policy changed in the recent version and you should not have the problem anymore.