Firstly make sure you are using the latest build. Some older builds had mire difficulty with xvid. If you are using the latest version and still not getting anywhere do a forum search for "xvid decompressor" and you'll find links to xvid codec builds and ffdshow filters which, when installed, will definitely work. I have encoded many xvid movies to svcd. It DOES work! We just need to find why it isn't in your particular instance.