Historically (from what I've seen), XviD packed bitstream AVIs are better for editing in VirtualDub. Without packed, I sometimes get wrong frame counts or an end frame ends up being lost.
P.S. I haven't seen any posts relating to this specifically, but it looks to me like the new beta3 codec plays choppy in WMP when I select packed bitstream. I've never used ffdshow at all, instead I allow the DivX 5.1.1 decoder to handle my XviD content. If I disable packed bitstream, there is no choppy playback, but then (as I said above) editing becomes unreliable in VirtualDub. Videos I've encoded with older versions of XviD play OK (packed or not), so I'm wondering if something has changed about the packing...
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May the FOURCC be with you...
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