I can answer the second question but as far as the first im not sure what the diffrance is....in the beginning of both DIVX and XVID they both have the same Logo flash at the bottom of the screen.
Second,
Dr. DivX works great, you can capture from vid card, and webcam.
Thats what i have used so far.
http://www.divx.com/
I like DivX, but not Dr.DivX so much...
I can capture and record directly into DivX Pro 5.2.1 in realtime, using NeroVision Express.
It will also encode the audio to AC3 2.0, also in realtime.
Beats the hell out of MPEG2 video with LPCM (wav) audio :-)
The DivX company is just that - a for-profit company dedicated to the promotion of the MPEG4 AVI format in general, and their proprietary MPEG4 codec specifically.
They are really trying to promote it as a 'standard' that should be embraced by the industry and included in playback hardware. (It's a good thing.)
XviD is Koepi's open-source clone of DivX.
It is a good product, and it's FREE ;-)
Doom9 even claims to prefer its quality over DivX and other codecs he has comparison-tested.
I use the latest DivX Pro codec, with GordianKnot.
Regards