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It's not that. I have Divx installed and the AVI source file plays fine in Quicktime as does the converted MPEG-2. It's just that when it comes time to import into iDVD it isn't recognized. I get some error from iDVD saying that the file is unsupported.
iDVD is able to handle the original AVI file, but it does a poor job of re-encoding it. The DVD it creates looks just awful.
Basically I want to get an MPEG-2 file that iDVD won't need to re-encode.
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I think that iDVD always re-encodes to its own mpeg-2 encoder (but I may be wrong, I don't use iDVD very much). You should need DVD Studio Pro to author a DVD with mpeg-2 files without re-encoding them.
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