Well this is a very weird question...
There is no "Best Codec" and I'm sure there will never be. There is SOMETIMES an agreement about which codecs are useful for different purposes. This whole page deals with MPEG1/MPEG2 Filetypes. We use these to play KVCDs / KSVCDs / KDVDs on the DVD Player, not on the computer monitor.
I don't know a whole lot about XVid, just as much as I know it's an MPEG-4 Codec, which is designed to give good quality with low bitrates. But there are not a whole lot players that can play XVid, if any...
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