FYI I'm new. I had a look around but I couldn't come across any info on this site about the differences between the two formats.

I converted a TV show once in AVI XviD and again in AVI MsMPEG4v2. Both are about the same size: AVI XviD is 505,349 MB and AVI MsMPEG4v2 is 505,085 MB. I used Cucusoft Ultimate Suite Full, Frame Rate 29.970, Video Bitrate 2500, 320K Audio Bitrate (no lost quality), Sample Rate 48000, Channels 6(AC3 5.1), Aspect Ratio 16:9, Output file AVI, Audio Encoder MP3 .... I think thats all the info I can give you. Anyways aside fromt he size I haven't noticed anything different. What is the difference? Is one better then the other?

My Goal is to keep the DVD video and audio quality; I'm not worried about the file size, I can go buy another hard drive. Then I want to be able to connect a device up to the LCD HD TV and play the files without to much hassle. (no I'm not connecting my computer to the TV) I'm not ready to drop $500+ on a Media Centre that can play BR, DVD, and display every other file under the sun. Any suggestions?

I'm looking to by a Western Digital TV HD 1080p Media Player ($120) so I can have all my DVD's on a hard drive where ever I go. It plays a rage of Video, Audio, and Picture formats off a USB portable hard drive. I've been using Cucusoft Ultimate Suite Full to convert DVD's that I can watch on my iPod for the last year. I know it's not the "best" video converter but it's simple enough for the amount of settings I play with to convert a DVD. It's really handy to just carry the iPod and some AV cables but I know I'm losing picture and sound quality. (it bugs me every time I watch something) AVI seems to be the format of choice and from what I can tell you don't loose much quality (depending on the settings). I figure I can keep my Video Collection in one place but always have it portable and be able to watch it where ever I go with the WDTV like I have been with the iPod.