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That is a VIEW codec that is not designed to be edited
Convert to DV AVI Type 2 with 48khz sound to edit
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As John points out, the problem is Xvid. That is a highly-compressed delivery format. It is not meant to be edited.
Now, I do get handed Xvid (open source), and DivX (first-cousin), and use DigitalMedia Converter to do, just as John says, convert to DV-AVI Type II w/ 48KHz 16-bit PCM/WAV Audio. Works fine, except for the major quality hit from the initial compression. Nothing can be done about that - the data is lost forever. If my client cannot get back to before Xvid, I insturct them that the quality will not be good.
Ah ok, thanks. Thats not really good for me then. All i wanted to do was cut a sequence out of the video. Thought that sort of editing could be done to any video format. Although i suppose the whole ordeal with the I frames being cut out could cause distortion until it passes to another I frame, unless that problem isn't existent when video editing.