Originally posted by: Moth3rOriginally posted by: trip42(And no, buying a new DVD player that supports Xvid isn't an option.

)
Why not? It would make things much easier for you. If you don't want to replace your main player, why don't you get a cheapo box to use as a second player?
Alternatively, many people use a chipped Xbox as a media player. This is a good solution too, especially if it's linked up to a home network.
Or if your PC is in the same room as the TV, just hook it up to a cable from your video card's TV-out.
Converting to MPEG-2 for DVD should be the last resort.