I'm using MPEG VIDEO WIZARD DVD to extract clips from VOB files and then creating a single MPEG file which looks fine. I can add transitions and it all looks smooth.

I then convert/encode the MPEG to a DivX AVI using SUPER and I get small but noticeable picture breakup on the avi file wherever I have added a transition and wherever I have added any text captions.

How do I stop this or what am I doing wrong ?