well, some people will need to download the xvid codec, yes, but even then, with the extra download, they'll still be downloading way less than they would were it mpeg-1.

to encode to xvid, use virtualdub.

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AMD Athlon 1700 (@2200mhz from 1466 sod the noise!) - 768mb pc3200 - 200GB Maxtor - Pioneer 106 - GF4 Ti4200 - twinhan/visionplus pci dvb-t - random pci analogue tv tuner - A7v600-x (to replace the a7n8x-d that died...) - random 17\" CRT
Sony STR-DE425 & Eltax c205s;
xBox w/20GB HDD- executer 2.3b;
xBox - standard;
Konica/Minolta dimage z10 w/2x512mb SD;
iRiver h340;
A silly amount of Cat-5 and usb cables