moh-maverick

best software for converting Movie files to Divx format is VirtualDub. It gives you lost of options in your convertion process. I should say that it only supports avi files but there are some other version supporting mpeg2 files. i myself have used it for along time for my convertion projects. for doing the convertion you must also have DIVX Codec on your OS. there alot of sites you can find guides for converting video formats:
http://www.videohelp.com/
http://www.doom9.com/

I do agree with round. It is not just one software for creating such striking effects. They not only use official programs but also they write some special ones for their project. one of the best softwares they can you as a platform for creating their highly specific applications is Maya. Maya includes MEL Language which is based on C++ language. 3D softwares are mostly used for creating virtual scenes and manipulating already taped objects on the scene and film editting programs such as Premier is used for color manipulation and othere 2D Desired effects.