AVI

Video Codec: Enable this option to cause the resulting AVI file(s) to use the selected video codec. The drop-down list contains all of the video codecs installed on your computer.

Remember that some codecs are designed for use only with a specific application, and most codecs are designed to work under certain conditions. Therefore, it is important to select a codec that is compatible with your requirements.  As a universal recommendation both for compatibility and file size/quality ratio, DivX and XviD are excellent choices, and both codecs have free versions available.

Settings button: Click this button to access the settings dialog for the selected codec. Each codec provides its own settings. However, not all codecs offer a settings dialog. For more information on the settings for a given codec, refer to the codec’s documentation.

Audio Codec: Enable this option to cause the resulting AVI file(s) to use the selected audio codec. The drop-down list contains all of the audio codecs installed on your computer.

Remember that some codecs are designed for use only with a specific application, and most codecs are designed to work under certain conditions. Therefore, it is important to select a codec that is compatible with your requirements.  As a universal recommendation both for compatibility and file size/quality ratio, MPEG Layer-3 is an excellent choice. Windows Media Audio is also a good choice, though it is not as universally compatible. Both codecs are included automatically with current versions of Windows.