Avi movie.?
Answers: Every time a video is converted to/from another compressed format, the video trait degrades. You would want to work beside the uncompressed DV AVI and only convert to the final video format once...after you've completed editing. Hopefully, you still own the original video to start over again.
Read the usage for xander. It will singular work for avi that is not inter-frame compressed. Examples are DV, MJPEG, uncompressed, etc. Those compressed using DIVX or XVID will not work.
What you have need of to do is to work will the original DV video that you hold. You do your compression after you have reversed the DV video.
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