how to get good resolution and video using XVID4PSP

[maass]

hi,
my camera records videos(320 x 240) in avi format.
but when i put on PC the video at dark parts /(shot at night parts) gets pixelated.
so what i tried to do was i tried to convert into mkv format (16:9) using XVID4PSP but the dark scenes remained pixelated.

can anyone provide me solution so that atleast a little clear video is obtained.

Thanks

[WascallyWabbit]

Not to sound rude, but the only real way you are going to get it a great deal better is to get a camera that supports a higher resolution. Unfortunately, the quality of a video encode is only going to be as good as it's source, and usually not even as good as the source. You can apply filters to it that may help smooth out some of the blocks, but then you are just trading blocks for blur. Now, someone else may have a magic bullet that will do what you are asking, but I haven't heard of one, and I wouldn't hold my breath.