I put everything into mp4/aac format since I know I can play it on anything in the house that way. A bit bigger than DIVX, but decent quality.
I don't mess about HD videos myself. I don't have anything that can rip the ones I do have and wouldn't want to have to store the files even if I did. But it'll be nice to be able to box up everything and still be able to watch our movies. If only it was that easy with books!
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