Pocket TV or Pocket Divx

I have an ipaq 3630 and 256 mb CF card. I have been ripping dvds into mpegs and watching them on my ipaq. I am happy with the quality of the mpegs and for example have ripped The Matrix so it is very watchable and it takes up about 220mb which i thought was quite good.
However i always read in this forum people ripping DVD's and watching them on Pocket divx pressumably after ripping them as *.avi's. What are the benefits of using pocket divx (*.avi's) over using pocket tv (*.mpeg)?
Thanks in advance
However i always read in this forum people ripping DVD's and watching them on Pocket divx pressumably after ripping them as *.avi's. What are the benefits of using pocket divx (*.avi's) over using pocket tv (*.mpeg)?
Thanks in advance