New to divx. need help.

[phils]

OK I'm new to divx. I've seen some vids that have outstanding quality with a small footprint. I've done some divx encoding but have it allways seems blocky. Mabee I need a new codec. The program I have now (VideoWave) will only let me encode at 75% quality. I'll look for Vegas Video and check out the doom9 website. Any other sugestions. I have a 900 athalon, 256 ram, and a brand new ATI All In Wonder Radeon that I havent capped with yet. I'll be capping from VHS. Thanks