K...I did some tests. I'm not sure why you changed the brightness on your encode...It looks like it's noon time in your mpeg encode. That scene was when bruce willis got up in the morning...so it should be dark like mine. Oh yeah, I made no attempt to correct the rainbowing and the dotcrawl that is inherent in both of our encodes.
Here is the link to an mpeg-1 quality encode at 50% size. (average bitrate 769Kbps)
http://members.cox.net/xvidcompare/5...%20quality.avi
I think the quality is pretty much the same in these two encodes. The xvid encode here may look slightly blurrier in low motion scenes but it is definitely less blocky in high motion scenes when compared to the mpeg-1 encode. I was mainly aiming at getting 50% of the filesize of the mpeg-1 clip.
Here is a better more decent quality encode. (average bitrate 1137Kbps)
http://members.cox.net/enragin_angel...%20quality.avi
I think the quality here is much better than the mpeg-1 version and is still much smaller in size than the mpeg-1 encode by about 30%.