Whats 2-Pass ? I was using Virtual Dub and everythign worked ok with the KS codec.
2-pass: in the first pass the movie is analyzed, in the 2nd pass the encoder reads the collected statistical data and can distribute more bits to the parts of the movie that need it and save bits on other parts. This way you also can meet an exact filesize. This gives an unsurpassed quality, the method was first invented for Nandub, now Vidomi has utilized it, too. DivX4 can be encoded in 2-pass with standard Virtual Dub.
More is explained for example in the guides on www.doom9.org or on divx-digest.com.
Learn more about DivX4 at www.divx.com.