i use tmpgenc for encoding
i havent noticed the video lagging in any of the movies i do
i would supply a link to a site that has it but i believe it might be a questionable site to post here.
i'll go find the programs home site and post that
here you guys go
its free ware but does have a time limit on encoding in mpg 2
http://www.tmpgenc.com/
(i use it to make vcds not divx encoded avi's so i dont know if it can be used to do so)