Dude. if it's 700kbps its NOT QUANT 1
quantizer mode is totally different from both the vbr and cbr encoding modes. There is no such thing as a bitrate when encoding by quantizer, each frame is compressed differently. Not to mention that quant 1 usually comes out to what would be the equivalent of like 13,300 kbps.
Whether divx is better than xvid is up in the air. You can look at the
codec comparisonI did and try to make your own conclusions. I'd say theyre about equal, the reason AD and Ermac reccomend XviD in the guides is because it's ~ quality, more tweakable, and its open source and free unlike DivX 5.
XviD is just DivX reversed because its a spin off of OpenDivX or project mayo; after DivX 3.11's days as an illegal codec were up, an original sourced (not cracked from something else), open DivX codec was developed. This went off in a few directions, only one remaining still open source, XviD. The other spinoffs were 3ivX, and DivX 4 and 5 which became a liscenced codec under "DivX Networks"
Quantizing relates to compression. The higher the quantizer, the more compression on a frame and the more details lost. The lower the quantizer, the less compression. Quant 1 dosen't compress much, which is why Quant 2 is usually the maximum that is ever used, since its the first level of actual compression.