Wanted to let you know that at CES, DivX announced the launch of DivX Plus HD devices from two partners (Philips an Seagate), which means if you're going to use Handbrake, we've come up with some settings for compatibility with the DivX Plus HD certification.
Here's the following for your advanced options:
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Basically, you'll want to make an MKV with H.264 (L 4.0) video and AAC audio. SRT subtitles and chapters are also supported, and you actually have more latitude than the string I posted above, but we wanted to put something out there so people buying DivX Plus HD devices can start to use Handbrake. We'll probably add a few more suggested presets as people ask questions, and we're also going to come up with one for people that want to create MKV videos to stream with our DivX Plus Web Player off their web sites.
If you're curious about more details, you can check out the DivX Plus reference tools (H.264 and AAC beta encoders) and the x264 settings for DivX Plus page at our developer portal: http://developer.divx.com/docs/DivX_Plus_HD/
Also, any device with the "DivX Plus HD" logo will also play DivX/AVI files you have in your collection, so all this means is more formats under one brand. More info here if you're interested: http://labs.divx.com
Look for those certified Blu-ray players from Philips and the DivX Plus certified version of the Seagate FreeAgent Theater+ soon! It's great to have Handbrake as an option for making content for these new products