Windows AVI is a "container" which could be MPEG 1 to 4, DivX or many other encodings. It's not so much a standard for encoding but a standard for holding encoded content.
DV is a standard as well as MPEG2.
Which one you use depends on your goals.
If the final goal is DVD I don't bother to encode it to MPEG2. I let my DVD creation software do that step.
Bob
Say I transfer video from tape to hard drive in DV-AVI format, should i output the final edited video in DV-AVI, Windows AVI or MPEG2? the video will be burnt to DVD not exported back to tape, thanx

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