Xvid (formerly 'XviD') is a video codec library following the MPEG-4 video coding standard, specifically MPEG-4 Part 2 Advanced Simple Profile (ASP). It uses ASP features such as b-frames, global and quarter pixel motion compensation, lumi masking, trellis quantization, and H.263, MPEG and custom quantization matrices.
this format is free, which apparently is one of the reasons for its popularity. The used codecs supports variable bit rates (as a default), and .ogg files usually play back easily on all platforms. All things being equal, the sound quality exceeds that of mp3 somewhat.