I dont have much space left so I dont have choice in capturing but after capturing the video in full quality, I edit it with Pinnacle, then I need to save it as AVI (as I dont want the way it encodes to mpg). But I need a codec to use so that I can compress with (lack of space).

Now, anybody pls suggest a codec and on what resolution I should save it so the quality would at least be near as DV quality or at least no blockiness.

I tried to use Divx 4 Low Motion at 720x320 (just some resolution I dont know if it matters as Ive seen DIVX movies at diff res) and using 2500 bitrate but I still see some blockiness.

When I choose Huffy codec, Pinnacle would keep telling me there was an error occured but doesnt give me specific error.

So guys, which ones should I use? And at what resolution? I will make SVCD and VCD out of it.

Thanks