I use TMPGEnc to compress my videos to either MPEG-1 or MPEG-2 files.

If you're looking to do Divx (otherwise known as MPEG-4) compression, then you can continue to use VirtualDub as it will use the Divx codec to do the compression.

Check your privates for some help in the encoding area.

A tutorial.

Videohelp.com - great informational site.

I'm STILL Rick James, bitch