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Thanks for the advice.

During the uninstalling of the existing UVS, the question comes up if I want to keep the personal settings. If I opt for keeping them, do I get the same results after re-installation as what you have suggested above?

Back to the original issue of Divx encoding, after re-installation of UVS 11.5 I still have the problem that only single pass encoding gives video and audio output. I checked the operation of Divx codec with another video editing software that was Nero Vision 4 and it worked (both with Divx and Xvid), however other problems emerged, e.g. Nero Vision 4 cannot encode audio into MP3

I have, in the now distant past, published here the results of various experiments I carried out with DivX 6 and VS 11+. I used all the various settings, including multipass, and found that in my initial use of the latter, it caused VS to fall over exactly as you have experienced.

In the end, though I used 'Multipass 1st pass', then 'Multipass Nth pass' for every subsequent pass, for a total of one or two more passes, which is explained in the guide. I used this with a 3000 kbps bitrate and using the Balanced (default) encoding setting and produced an extremely good quality file.

I have to add, though, that I also used the final quality setting in Home Theatre mode -- '1 pass quality mode'. This took away the bitrate setting and substituted a 'Target Quantizer' set at 4. It was also set to use Balanced default encoding mode. This produced the largest, but noticeably the best quality file of all my experiments (though not much more so than that produced with multipass Nth pass at 3000 kbps). I played this file on WMP and PowerDVD, as well as the original DVD-compatible mpeg-2 of the same video, and I had a hard time telling any significant differences in quality.

I have now bought the Pro bundle of DivX 7, but have not carried out similar experiments with this as yet so don't know how it will perform either generally, or specifically with VS X2.

BTW, I am a little surprised that NeroVision 4 could not encode MP3 -- Nero more generally has no problem with mp3 -- though it uses the LAME MP3 codec which VS has great difficulty with...!