Hi,
It's a strange thing that usully is tied to a crapy source.
DivX or XviD are not the best sources around.
And mostly because they're mostly downloaded from the web encoded by god knows who and with what processes/tools
Don't misunderstand me: the one you have might not have been downloaded but mostly are, so...
Be a sports and try your method with a true DVD source.
If it's jerky we'll try to help.
If you still want to have help on that "pseudo" avi (DivX/XviD) please post in the right forum http://www.kvcd.net/forum/viewforum.php?f=66.
Cheers