It appears to use a single pass constant quality compression for the video. The average bitrate of my final DVD was 3560kbps. This would be ok if you had a VHS source, but a good Divx is better than that.
It picked a 160kbps AC3 rate (2 channel source), which I probably would have gone a bit higher myself but not critical. Does anyone know if it uses a higher bitrate for 5.1? If not, that would be bad.
Ease: Fantastic, nothing really to do but pick the file and hit go. Probably one of the easiest I've ever seen.
Quality: Not bad, you ARE recompressing a file so you make allowances, but I probably would have favored a multipass encoding if the source was better.
Price: Good AC3 and MPG2 encoders can be really expensive for the good stuff. This is free (for now), you gotta love that.
Overall, if you're useless with this sort of thing I'd give it an A, if you know what you're doing and have no problems with "the long way" it's a C+.
It hasn't implemented joining multifile Divx, and it doesn't seem to be able to handle multiple audio streams, let alone subfiles.