Xvid codec. Confused about licencing

Archived from groups: rec.video.desktop (More info?)

I downloaded the Xvic codec and tried it out against wmv. The quality was much
better. I'd like to use it but licencing is a bit odd. The xvid.org says:

"Can I distribute your codec along with some of my own videos on CD-ROM?

XVID is under GPL license, which means you can distribute it freely, e.g. on a
CD-ROM or whatever form you like.
However, if you distribute XVID in binary form, you have to add the source code
to the CD-ROM, too."

But then I read that there are opaque licencing issues involved etc. Xvid.org has
source downloads but NOT binaries. What's the deal here?? They say I just
download binaries from google... hmm??

What I want to do is have a CD which contains my own short movies and like this:

"Here is a list of short instruction videos. Select video from list below and
click 'Play' (please not you have to have Xvid codec installed. If you do not
allready have Xvid codec installed press the 'Install Xvid codec' button)"