I am encoding with XviD. I have tried 1.03 and the beta, also have tried Mpeg and h.263. When my encodes are done, I load up wmp 10.0 and once the video starts, the player dies. I have a p4 1.8 and 512 ram, so I know it isn't a hardware issue.
Are you actually sure or you are just assuming because you have XviD installed? You might want to try the latest 1.1 build.