Just got the LiteOn 2002 DivX player (love it!), and am in the process of tranferring our Disney collection to DivX format. I've done a 720MB XviD(112Kbs MP3) version of Toy Story as a test using FairUse. I'm very happy with the quality - much better than I expected.

I'm still learning about this so I have a couple of questions:

1) Which codec (DivX5/XviD) is recommended for CGI movies, and which for Disney animation (not anime)?

2) What have you guys found to be the best bitrate/audio setting for these type movies, as well?

I only have a 27" TV with no surround - but surround will be added next year.

Thanks.