then mpg1 is even better! thanks for the tip!

Can you explain why AVI is the only type of movie file I've seen so far with my PC games?

High bitrates require better machines. You guys sound like 2 gig+ machines have been around for decades. The radeon 9700 hasn't cleared the shelf, and the 9800 is kickin' it's butt already.

Of 3 puters on my desk, 1 is a 166 P1 with a 1.5 meg hard drive. I use it for testing web sites, but I know people with even older machines who browse the web and play games (older ones) on theirs.

Mpeg1 can be any resolution, and any aspect ratio, but your Premier or Ulead Video Studio won't do it above the size you stated.

Play back your mpg at 200% and compare it to a Cinepak version. Watch what happens to the colors in dark areas. Yes the AVI is bigger, but also (I think) slightly better. Sorensen and Quicktime are better codecs though.

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it's most famous for being the VCD codec.

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Not on my VCDs. I run AVIs.
I use MPG on the web for it's smaller file sizes, as DL times count.