Encoding programme

what other programme besides tmpgenc encodes divx or xvid to mpeg2 with good quality

Procoder Express does, and comes with a full DIVX license.

honestech avi2dvd
and
TMPGenc

are options too
(but there are lots more)

any freeware

http://club.cdfreaks.com/forumdisplay.php?s=&forumid=66

yes there is;

http://members.cox.net/beyeler/bbmpeg.html
http://www.dvdrhelp.com/tools.php?tool=84