question about "save old format avi" with Vdub

[mr-scarface]

I'm trying to cut out a few seconds from a video file in vdub by using mark in and mark out, then selecting "save old format avi", but the output file suffers a slight quality loss. The source file was a divx. My main concern is keeping the quality the exact same, I don't care about file size. Is 'save old format avi' even the right way to do this?
I have other source files which I've tried this with, that aren't divx - but the result are the same.

Also, on a related note - Some VOB files that I'm trying this with, the ouput file seems to have a distorted pixel aspect ratio. It looks like the output file has 1:1 instead of 4:3 - like the picture has been stretched vertically and is taller than wide. Again, I supposed "save old format avi" isn't the correct way to do this.

[Baldrick]

Select video->direct stream copy and audio->direct stream copy and you wont lose any quality.

[mr-scarface]

after I select direct stream copy, I just proceed as normal and use 'save old format avi' ?

[jagabo]

after I select direct stream copy, I just proceed as normal and use 'save old format avi' ?

I believe "old format avi" is the original AVI definition without ODML extensions. You won't be able to exceed -- what was it? -- 2 GB. There's really no need to use the old format unless you have some other program/player that can't handle the ODML extensions.