How to create DivX movies with Dolby Digital AC3 sound
Creating DivX movies with Dolby Digital sound is now possible and very easy to do. Now you get almost perfect picture quality with DivX and the crystal clear Dolby Digital soundtrack.
You will need the following software for this guide:
Power DivX - needed to play DivX movies with Dolby Digital soundtracks.
Nandub
Step 1
Convert the movie to DivX first like you normally would but this time you do not need to encode the audio to mp3. So in Gordian Knot, ignore the Audio tab in the encoding process and just encode the video. Next install the Audio filters. The Audio filters are required for playback. If you're using Win98, install registerfilters-98.bat. For Win2k or XP, install registerfilters-2K.cmd.
I am also assuming you used the DivX guides on this site which means you should already have Nandub if you installed Gordian Knot.
Step 2
Next we have to extract the AC3 soundtrack. An easy way to do this is to use DVD2AVI. If you've been using the DivX guides on this site, you would've already extracted the AC3 file that you need. This AC3 file would've been the file you covert to MP3 but since we want Dolby Digital we don't need to convert it. Another way to do it is to use Xmpeg to extract the aduio. Under the "Run" tab of Xmpeg is an option to extract the audio.
Step 3
Now that we have the AC3 file, we need to multiplex the audio and video together. So open Nandub and open your DivX movie. Under the video tab, make sure its set to Direct stream copy. Then go to the audio tab.

Select AC3 audio and select your AC3 file. Then a window should appear showing you the details of the file.
After that you have to go select Interleaving from the Audio drop down menu.

We only have to change a few things here. You can set the "Interleave audio every" somewhere around 80 ms or anywhere in between 96 and 64 ms to avoid choppy playback.
If your audio track has a delay, you should enter the value in the "Audio skew correction" box. If you used DVD2AVI to extract your AC3 file, the filename should have the delay value in it. Don't forget to put the sign in too.
Step 4
Now all we have to do is save the movie. So go to File and select "Save AVI" and in a few minutes your movie will be multiplexed.