ati mpeg2-divx possible? Help plse!!

[attomixt]

Hey guys, tired of looking around, figured if I posted here it wouldnt hurt. Heres my deal:
I have an all in wonder 9700 pro. I like to record television shows/movies with either good(ati vcr format) or dvd format (mpeg-2). Seems simple enough....but I cannot get a program to let me convert my mpeg-2 files to divx. I've tried mutliple progams, and the only one i've had any luck with is xmpeg. It works for short programs, but often crashes, and when I have movies, It will only decode the first second if it, and then be done, like thats all it sees of the video. Can this even be done? What can I do to get these file sizes under control? I have 10gb movies that are filling up my secondary drive fast! If it helps any, here is the file info for a random recorded movie:
File Name: The world is not enough.mpg

File Size: 11,300,034,560

Media Type: Mpeg2

VideoInfo:
Picture Information:
Width: 0 Height: 4
BitCount: 24

Media Information:
Total Frame: 323642 FrameRate:29.97

fccHandler: MPG2
Codec: CyberLink Video/SP Decoder (ATI)
Description:Video

AudioInfo:
SampleRate: 48000 BitRate: 224000
Channels: 2 BlockAlign:672

Codec: CyberLink Audio Decoder (ATI)
Description: Mpeg-1
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Any help is appreciated

[attomixt]

I think I got it, the virtual dub that came w/ gordian knot seems to be working, but the standalone that I had didn't.

[setarip]

You might also want to try using MPEG Mediator...

By the way, the following doesn't appear to make sense:

"VideoInfo:
Picture Information:
Width: 0 Height: 4"