Problems in cartoon encoding

[Moti172]

Hi
I tried to encode cartoon movie (DVD) to xvid, but for some reason received unwanted artifacts around the objects line (check the clouds in the picture attached).

This is my avs script:
import("C:\Program Files\AviSynth 2.5\plugins\SeeSaw.avs")
DGDecode_mpeg2source("E:\VIDEO_TS\VTS_12_1.d2v",info=3)
ColorMatrix(hints=true)
crop( 0, 14, -2, -14)
LanczosResize(640,352) # Lanczos (Sharp)
a = last
b=a.degrainmedian(mode=2)
SeeSaw(a,b, NRlimit=3, NRlimit2=4, Sstr=1.5, Slimit=5, Spower=5, Sdamplo=6, Szp=16)

and this is my xvid_encraw commands (via megui):
encoder commandline:
-i "E:\VIDEO_TS\1.avs" -pass1 "E:\VIDEO_TS\1.stats" -bitrate 1197 -kboost 100 -chigh 10 -clow 3 -overhead 0 -turbo -max_key_interval 250 -nopacked -vhqmode 4 -qpel -qmatrix "C:\XviD costum Matrix\Jawor_1CD_Matrix.xcm" -closed_gop -imax 6 -pmax 6 -max_bframes 2 -bvhq -bquant_ratio 100 -bquant_offset 0 -bmax 6 -threads 1 -zones 0,w,1,OC
successfully started encoding

Does someone what is the cause for the unwanted artifacts?

[Moti172]

another example attached:

[foxyshadis]

H.263, Jawor 1CD, Sharktooth's ULR, and other low-bitrate matrices suppress blocking at low bitrates by enhancing ringing. (Roughly.) Solutions: Don't sharpen the source so much, smooth more, use a higher bitrate, use a higher bitrate matrix, or just switch to h.264. If you only switch matrices, don't be surprised if you get less noise and more blocking, though.

Use 1/4 or 1/3 DVD. They're as cheap as CDs now! No need to compress so hard.

[MetalPhreak]

Perhaps you should try with the H.263 matrix - it might produce less ringing, and then follow foxyshadis advice if that doesn't help.

[Moti172]

Following the advices above I changed the matrix to mpeg and gave up the extra sharpening (seesaw).
It helped and reduced the ringing without increasing the bitrate (1197).

P.S - With the same configuration I didn't received improvement by increasing the bitrate.

Thanks for the advices :)