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Script for low bitrate DivX required?

I come across a few low quality DivX clips with resolution 480x360, bitrate < 900 bits/sec that have also a lot of noise.
Basically I am using Dailhot V4 script to convert them into 352x480 KDVD MPEG2. I need KDVD for compatabiliy:

Code:

AviSource("PATH\NAME.avi",false) 

BlindPP(cpu=4) 

Blockbuster(method="noise",detail_min=1,detail_max=3,variance=0.1,seed=1) 

Convolution3D(1, 6, 12, 6, 8, 2.8, 0) 

GripCrop(WIDTH, HEIGHT, overscan=1, source_anamorphic=false) 

GripSize(resizer="LanczosResize") 

Undot() 

TemporalSoften(2,7,7,3,2) 

DCTFilter(1,1,1,1,1,1,0.5,0) 

#Blockbuster(method="noise",detail_min=1,detail_max=10,variance=0.3,seed=5623) 

GripBorders()

I have modified the Convolution3D line with preset=MoiveLQ and preset=VHSBQ but the result was still no good. There were fluid-like patches on the actress's skin and in the dark areas of the scene.
The AVI when watched through the WMP do not have these artifact. I tried 352x240 MPEG2 but the patches remaine there.

Can any guru suggest a script and setting in TMPGEnc or CCE how to convert low bitrate and preserve as much as possible the details.

If you are encoding Lord of the Rings i am having the same problem. I just check output as YUV data in TMPGenc. It supresses the noise, but it's still there, just a lot less noticeable. On very very dark scenes the noise will still show up. It's almost impossible to get rid of even with blockbuster. The best way to get rid of noise, blocks, etc. is to increase your resolution.