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DVD uses mpeg2 video compression. This is 1990s technology and a commercial DVD is about 8000mb in size. You can get equal quality using Xvid (mpeg4) codec with only 1000mb. Even a 700mb xvid that is properly encoded looks as good as the dvd it was created from.

Also, there is no need to convert the files if you buy a divx compatible dvd player. You can buy them starting in the $30-50 (usd) price range.

You will probably see more video downloads moving to the x264 codec (divx/xvid is x263), because it can do high definition video. As of this time most dvd players won't play x264 video, but you can buy an inexpensive settop media player that will. MvixUSA makes a very good one that can accept an internal harddrive. Also Western Digital makes a WD Live box thats cheaper and will play most any kind of video.

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