I'm a little confuse. Does blu ray reads video with packed bitstream or with xvid header ? I want to buy a blu ray player because my stand alone dvd player doesn't read packed bitstream videos, it just exit video. So, again, does it read packed bitstream ? Sorry for my bad english.
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xvid is not part of the blu ray spec, so you will have to explore that player by player.
The advantage of a blu ray player: you can play files directly from a usb memory stick in full HD.
If you copied an xvid file to a DVD and expected it to play...it will never happen. DVDs have to be authored.
You will have to use a program such as DVDStyler to do that.
If a BluRay player can play Divx/Xvid, it probably can play videos with packed bitstream, but there are no 100% guarantees.
It is very easy to remove packed bitstream with MPEG4 Modifier. You do not have to re-encode when doing that. It's so easy that I wouldn't worry about it. Just use MPEG4 Modifier when you have a video with packed bitstream.
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