Divx4 glitching problems

[Ashendon]

When I am trying to convert an old divx4 video to dvd comliant mpeg, or any other conversion, the video becomes blocky and glitches throughout the whole video. It plays fine without any glitches when it is divx4. I have tried converting it to xvid, divx 5, mpeg2. All turn out bad. I am using d2sroba with dvd2svcd and using cce to encode the video. All processes complete and the end result is not acceptable. Any help would be appreciated. The versions for d2sroba is 3.6, dvd2svcd 1.2.2.3 and cce is 2.67.0.0.9. I have an athlon 64 3500+, ati 9800 radeon, 3 gigs memory.

[celtic_druid]

Well when you play it would be via dshow, whereas when you convert it would be via VfW. How does the source look in VDub? How about the AVISynth script? Does it look ok when you play it?