Thanks for the response John.
I will have to look more closely at the additional attributes.
The reason I went Xvid to VOB was because the ultimate destination is DVD and all I wanted to do was trim the video. A little off the beginning and end. No major edits.
I had tried many different conversions with a few different programs and the final output was always pixelated, the exception when I went directly to VOB using a certain program that can only output VOBs.