First Time Setup

To convert a movie to DivX, the free codec from www.divx.com is required. Download and install it. You may also use any other video codec which is suitable to encode a movie.

After installing the DivX codec, we must activate it in MovieTransformer. Select "Edit Output Presets".
Depending on your television system, select "DivX PAL" or "DivX NTSC".
In the codec combo box, select the DivX codec.
For bette image conversion quality, i would recommend the "Dual" mode. In this mode, the movie will first scanned for fast motions and in a second run, the codec will choose the best bitrate for the different scenes. But it will take the double time.
Now press the "Settings" button to go to the codec´s individual otpions.
Now press "Settings" at the bottom left corner of the dialog.

Activate "Disable the feedback window" and press Ok,

For processing single JPGs to avi, be sure to disable the "Psycho visual enhancement"

Press Ok again to go back to the Presets dialog, and close this too.

In the main window, select the preset you edited prior.

The last step is to choose the folder, where the converted movies should be stored.
  www.moosware.net/MovieTransformer