I deleted the five .dll files recomended in the threads but then avid would not open, so have to reinstall them, therefore am gonna have to buy some third party software to encode quicktime into mpeg, I was wondering if any of you knows some software that works with Avid Xpress DV 3.5.

Thanks.

Sorenson Squeeze or ProCoder used to work just fine for me way back when I was using XDV 3.5, those apps however have since been updated and may not run on your computer or version of QT.  

I think your biggest issue with any new software you get will be the compatibility/conflict between what your system will handle and what any new software will require.