Support external codec (VFW), and learn how to use the Xvid codec for here.

Xvid codec, which can be downloaded from the following sites. 

http://ohsoft.net/update/codec.php

After installing the codec, it is necessary to re-run the oCam always, you can see from the list of external codecs.

Click the codec menu external.

Click the check box that you are using an external codec. 

Select the Xvid MPEG-4 Codec List.

Then click the Settings button, and let the advanced settings of the codec.