which format should I use.

[kailydog]

I have all my music on an external hd and am going to put my movies on them. I'm using a d-link medialounge to play them on my tv through my router without my computer being on. This device supports wmv9, mpeg1, mpeg2, mpeg4, xvid and avi (mpeg-4 layer only) which of these formates would be the best for quality and ease of encoding. I am just keeping the main movie with dolby or dts. I'm playing them on a 50 inch. I first thought I would use avi or xvid but the movies don't come out the best on conversion at least the ones I have done so far (autogk). I think if I can follow this person correctly (from another post, i've been reading a ton about this) I can just switch the vob's into one long movies with some type of converter (being that they are already mpeg2)? Is this correct or what would be my best format and what program should I use for it. Or does someone have a diferent suggestion?
Thanks for any help you could give

[mats.hogberg]

XviD AVI with original AC3 DD if space is any concern (avi.net or AutoGK).
Else convert the VOBs to mpg2 with vob2mpg for original size & quality. No "conversion" is done, just "repackaging".

/Mats