Which video codecs should I use; Xvid or H264?

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Xvid takes up smaller space but H264 has an overall higher quality. Hmm... The choices, the choices.
 
There are many differences. XviD (and DivX for that matter) are MPEG-4 inspired codecs. But they are not true MPEG-4 since they came out before the MPEG-4 specification was completed. They also only implement a subset of the features and functionnalities.

Now be carefull not to mix MKV with H.264. MKV is only a container. It can contain anything (from DivX, to H.264 and many others)

H.264 is a fully MPEG-4 compatible codecs. For the full technical details, you should read the documents on H.264. But the idea is that H.264 presents a better compression ratio (smaller files for equal quality) and is capable of delivering higher quality than DivX or XviD.

now its up to u what do u want .best of luck
 
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