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Video formats - Any difference? - Printable Version

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Video formats - Any difference? - Kelemvor - 2012-11-27

Just getting an XBMC machine ready to go and am wondering about video formats.

I have a brand new LCD TV that I will be connecting up via HDMI to my PC. Up until now I've just been ripping my movies to AVI files via the Divx Converter program as I didn't care a whole lot about quality on my 27" tube TVs. Now I want to make sure I get them in the best format I can since I can actually take advantage of that.

So, does XBMC have any requirements that it plays certain formats better than others for any reason?
Is MP4/MKV files the standard everyone uses these days? (Don't even know the difference).
Is there a difference using Divx Plus HD to convert to an MP4 vs using Handbrake or anything else?
Does the sound encoding system make a huge difference?

I figured others have already done testing and comparisons so if anyone has a link to anything like that, please let me know.
Thanks!!