Multi-Threading XVID conversions

[ORACOM]

Hello. I am having difficulties multi-threading XVID conversions. When I convert from .MKV to MP4 - all cores on my Q6600 are being utilized and the conversion process takes 1.5 hours. However when I convert to XVID, it takes 2.5 hours and my processors are not even close to being fully utilized. The cores are all below 20% and will fluctuate between 10% and 37%. They don't reach 90% as with the MP4 conversion.

I am wondering if anyone else if having the same problem?

I am running 4.03 of the PS3 Video App, Vista X64.
Q6600, 4GB of RAM

I have already enabled thread count to "4" under all profiles. Any suggestions?

Thanks,