After editing in Screenblast does it make any difference whether I output an AVI file or an mpeg2 file to load into Movie Factory to make a DVD? Either program can convert the AVI to mpeg2, but I don't know if one does a better job than the other.
I would always make my MPEG2 file in VideoFactory (Screenblast MovieStudio) because the MainConcept encoder is better than the Ligos encoder that came with Ulead Moviefactory 1. I think MovieFactory 2 might also use the MainConcept encoder now but I’m not sure. I just got into the habit of encoding with VideoFactory and never changed.
The advantage of encoding to MPEG in Screenblast MovieStudio is that MPEG is smaller than AVI so you don’t need as much disk space and if you’re still using FAT32 drives you won’t run into the 4GB file limit as easily. The quality of the MainConcept MPEG2 encoder is also excellent. I think you'll be very happy with the results.