To go from Movie Maker to sane stuff I do this. It'll also work for anything the Windows Media Encoder thing can open, but as it says, the lower the source file's quality, the mushier it'll get.
http://www.creativeinsanity.net/zoids/medi...ishingamvs.htmlBitrate of of 400-700kbps before audio seems to be a good range for 320x240 clips from high quality sources. Otherwise I tend to drop it a lot lower, 'cause it's crap already.
If you're dealing with avis from DVDs for clips, <3 Xvid, but the process is a bit of a pain.