Premier Elements 7 and exporting to Xvid?

Hi
iv recently produced a few different 3D animations and have rendered them all out to .tga's. now using PE7 i simply want to export them out to Xvid. However no matter what setting I use within Xvid the final file does not play correctly in media player. It is un-smooth and choppy, with some artefacts.
Ive come across a couple of things in this forum about Xvid, stating that it has problems and such, but is it actually incompatible with PE7?
I have a work colleague who uses PE4 and exports to Xvid and only encounters minor problems, but he can still get his final files to play smoothly.
Is there any thing I can do to fix this, or is it just an unavoidable compatibility problem?
I have the latest version of Xvid. On a quad 2.4 GHz system, with 3 GB Ram.
Any help would be great, thanks.
Rob

I export out to a Microsoft AVI, No audio. Then I use the Xvid MPEG-4 codec, with millions of colours.
It is at a wide screen resolution so 1280 x 720
The Xvid codec is set to maximum quality (although iv tried it at various different qualities and got the same problem)
The display encoding status windows instantly crashes PE7 so that is disabled.
With the profile @ level set to HighDef (but im not sure what this actually does, it was just left as default)
Done and 25Fps
To a square pixel ratio
With a maintain data rate recompress selection.
I think this is all I can tell you. Unless there is some vital part I am overlooking.
Thanks

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