hi drew,
i would recommend using the open source XviD codec for your in game movies, the codec is free for encoding and playback and there is no annoying watermark over the video like when DivX kicks in. To all intents and purposes XviD is actually the better of the 2 codecs. both codecs are pretty much interoperable as they are based on the same 4CC principles. the only difference is the quantizer matrices and motion search, which seem to be better on the Xvid codec, I would also recommend multipass encoding of your files as the end result is far superior to a quality based single pass encode.
thanks, grant.
PS. you should also be able to distribute the Xvid core installer with your game as long as the program remains unchanged and has the original documentation in place. it's GNU licenced. your charging for the game not the XviD codec
I'd even expect you could run the installer from a windowed DBP app for that extra professionalism, checking for it's exsistance in the reg beforehand
Ohd Chinese Ploverb say : Wise Eskimo, not eat yerrow snow.