use VLC to covert to needed AVI codec

[coachgeo]

Sorry did search first and most all this seems over my head. If there are answers in here please don't hesitate to direct me to a good search string to find them or a thread.

I have a small video and pic play gizmo product that plays ONLY video file formats (container) of:
. AVI, VOB, MPG, DAT

and playable with ONLY codecs of:

. Mpeg 1 , 2 or 4 ASP
. XviD (resolution up to D1)

need to convert files I have to match this. All the files I want to convert play in VLC.

My Purpose of product? Load flash drives/mem. cards etc with vids. plug these into this gizmo's ports and play them via its firmware in a loop, creating a 24hour running demo video along w/ commercials

I have a test file for example that will NOT run on this. Says it does not support its codec. It is in an AVI file format (container). According to avicodec program this file is recorded to standard of M-jpeg and there is not a matching codec in the firmware to play this. How do I convert this to one of the codecs above using VLC? The codec, fps, Bitrate etc. options listed in the Convert- video section of VLC are totaly forien laungage to me so dumb me does not understand what built in one to select or to create.

What is the best combination for me to use out of the formats (containers) and codec list supported by this product? DAT is a DVD format right?

[coachgeo]

Some other limits according to the manual are:

. Resolution up to 720x576 PAL, 720x480 NTSC
. Subtitles SRT, SSA, SMI, SUB