Just thought I'd post this information from Plextor Dirk @ Divx.com for all the Plextor convertX owners that might be here. Here is the quoted message:

" received more information from my engineers which clears things up for me. I gave everyone some bad info previously in this thread.

The Philips decoder chip we have in the 402U always captures interlaced video. This video is passed to the WIS encoder chip we use. This encoder chip and driver only supports de-interlaced video at this point so the video is converted from interlaced to de-interlaced video before it is encoded.

For MPEG-2 video, we support three types of conversion; Blending, Direct Waving and Interpolating. We use the Blending method by default which gives good results on still images and slow moving images. For fast moving images, the Interpolation method provides best results but this method is not great for still images. The Direct Waving method is great for still images but bad for slow and fast moving images. We will release a new driver in the next week or so and it will be set to Blending by default and will allow the user to change to any of the other methods depending on what type of video they normally capture. From the beta drivers we have sent out, about 50% of people have had their problems cleared up and they are very happy with the quality so we are making some progress.

Unfortunately, these three methods are only available for MPEG-2, not DivX and MPEG-4. For DivX and MPEG-4, only the Blending option is supported and so there is no way to change the default setting to get better video."