I think ATI TV Wonders Pro can do that. They could do DVD, VCD, SVCD, AVI, WMV, and MPEG-4, but it does not work in my Philips DVP642 that plays DivX, Xvid, and MPEG-4 for some reason (it plays for a little bit but looses the sound after a bit. The other formats seem to work well and there is a ton of bit rates, FPS, and resolutions to choose too. It is also a TV tuner and if you want the bundle some with their nice Ramote Wonders.
AMD Phenom II x4 945 3Ghz | ASUS M4A77TD | 2X WD 1TB SATA 2 hard drive | 2x2GB Corsair XMS3 | nVidia GeForce 8800 GTS | ATI TV Wonder Theater Pro 550 | Antec P-160 case | Antec 650w Earth Watts | LG Blu-ray Super Drive | LG DVD RW | Windows 7 Pro