Section 1 could mention that this is more or less a "VBR" mode, since many people are familiar with the approach from MP3.
You mention "MPEG4 part 2/Divx/Xvid", but the encoders (Divx/Xvid) should probably go into parentheses.
Maybe you could mention that there's a huge difference between a (theoretical) codec and an (actual) encoder as well as what's a codec vs. a container. You can steal here if you like: http://superuser.com/questions/300897/ — unfortunately, many people get confused by these terms.