As far as I know there is no app that can do divx (or any other type of mpeg-4) encoding in real time out just yet. And yes, if you want high quality 1-2gb/hour is what you will get with any app using mpeg-2 encoding.
Last time I looked into it (3-4 months ago) there was no simple way to convert to xvid. Programs like Gordian Knot are good but require knowledge and configuring. I think your best bet for easily doing this is either the new Divx 6 package or Quicktime Pro 7. BTW, you are looking for anything in the mpeg-4 class of encoding. There are several codecs and different apps in that category including h.264 (apple), divx (commercial), xvid (open source), and wmv 9 (M$). -- Brian
