converting fraps into divx

Hello, I’m having problem with quality of the movie recorded from fraps.
After I recorded fraps, I tried to edit it with windows movie maker.
For some reason, the quality from windows movie maker didn’t turn out so well.
After convert it through dr.divx, the quality turned worse.

Does anyone know how to edit and convert it into reasonable format and quality?

thanks

Windows Movie Maker doesn’t let you tweak with encoding options much, as it is a novice tool. You’ll want to use Windows Media Encoder instead. You’ll find it here. (On the first drop-down menu pick 'Windows Media Encoder'.) You’ll most likely use Windows Media Encoder 9 (possibly x64 version if you’re using 64-bit Vista or 64-bit XP).
You’ll get a much broader range of choices both in codecs and encoding parameters using this.

Dr. DivX is also a novice (or rather one-click-solution) tool. If you want to tweak encoding parameters, I suggest learning to use VirtualDub or NanDub in conjunction with the DivX guide. You can look those up here. (The guides are in pdf.)