Colors bleeding when encoding?

[wldncrzy14]

I'm trying to convert an anime episode from avi to DVD. When I load the avi into VirtualDub, the colors are strange. For example, there is a red title near the beginning, but the red color moves about and flows outside of the boundaries it should be in. Other colors also have this 'bleeding' effect. And this also happens with my final .mpv file after I run my AviSynth script in CCE.

When the avi is loaded via BSPlayer, however, everything looks great. Are there any options in VirtualDub, or anything that will allow the video to retain its quality while it's encoded?

Thanks

[wldncrzy14]

Hmm, is it possible that this is an XviD/DivX error in VirtualDub and AviSynth, since the original video plays fine in BSPlayer?