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First of all, you're comparing oranges to apples. What you really mean is mpeg-2 vs xvid.
If you're talking formats, then Xvid is superior in every single aspect. I'll repeat that so it's clear: Every Single Aspect. Bar none. Meaning that's is more gooder than mpeg-2. Which really shouldn't surprise you since xvid is an mpeg4 compliant codec. And MPEG4>MPEG2>MPEG1
The only thing that clearly beats Xvid is H264/AVC
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