I was converting the whole movie. Previous AVI efforts landed me over 100 gigs, this AVI is 47 gigs. Also, the AVI I get can`t be played on VLC, it apparently doesn't support LAGS:

No suitable decoder module:

VLC does not support the audio or video format "LAGS". Unfortunately there is no way for you to fix this.

That doesn't bother me much, it plays fine in Mediaplayer and it looks very nice, no interlacing. One other thing that concerns me though is aspect ratio. It looks fine, but when I view it in fullscreen on my 16:9 display I get pillar boxes in addition to letterboxing. I would expect an anamorphic image to fill the screen side to side.

So what have I done wrong this time? ;)