LG LDA-511 - Better quality with MPEG4 or DIVX?

[kirklt]

I recently purchased a new LG LDA-511 DVD player. As I understand, the player will show MPEG4 and DIVX files directly from a computer file on a PC formatted DVD or CD.

Is it possible to get better quality than a DVD using these computer formats directly converting from my mini DV files from my camcorder, using high quality AVI files?

Or will I always get the best quality going straight to DVD?

[Krispy Kritter]

When dealing with video you want to take as few steps as possible. If possible, you would want to go from DV directly to compliant mpeg2.