Total Video Converter conversion formats

Well, I'm just using this program to convert my .flv files into regular movie files I can watch with Media Player Classic or whatever, but my question is about all the different formats that I can convert them into. Normally I just use the DivX format, because that's all I ever knew when I started downloading movies and stuff off the net.

Now there's all sorts of new codecs and this and that, and it's all very confusing to figure out which one is the best, yada, yada. Which option should I pick for the best looking picture and sound? I was thinking lossless .avi, but that sucks up an assload of space. Is DivX still the best? Here's a screenshot of the options along with the dropdown menus of the suboptions you can pick to decode the .flv movies into:

H264/AVC for video codec, AAC/Ogg for audio codec and MP4/MKV as container (MP4 if you want to be more compatible with hardware players).
Just don't use AVI as container.

I think is best format will be to use mpeg4 mov