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Another epic fail from Nokia.

I thought I'd better let everyone with the same problem as me know.

The solution is to uninstall that POS software and swap your Nokia for an Android.

So it stops xvid working on your PC or on the n900 after it's connected?

Stops the PC working... It installs a faulty codec on the PC so it can't play Xvid any more.

The original codec exists but seems to take a lower priority than the Nokia one (even if you reinstall it after the Nokia Suites).

I think divx is ok (probably cause the divx package has so much running in the background and gives you the option of making it the default codec).

Just install kmplayer and play videos the way it's meant to be played on a Windows PC without worrying about system codecs. (it's the best media player for windows and it's free) http://kmplayer.en.softonic.com/

I don't really like installing software on my computer that I don't need. I don't really need any other players because WMP is built in...

Also, working around problems just gives Nokia an excuse to continue with their perpetually c**p Nokia software and hardware.... Install a new player because of PC suite, get a new email account because of Modest and MfE, find a new website because of MicroB and flash, use a different phone because of rubbish speakers, miss calls because of screen glitches, etc, etc, etc...

I've enjoyed Nokia's for years and years but this is all just inexcusable.

Or could it be a problem with Windows codec handling? Just use VLC, it works.

Well I'm sure both them pieces of software are better and more reliable but why on earth are Nokia installing codecs that don't work on our PCs...

Exactly what codec do you imagine Ovi is installing and in what way is it preventing Xvid from functioning?
I regularly use Xvid to both encode and decode and have the Ovi suite installed, and have never had any kind of problem.
Have you considered that just maybe this is an issue with the setup of your machine and codecs, rather than defaulting to "blame nokia"?

O/T for OP: Flashing your emmc to the stock image, overclocking and then installing little or no apps should resolve the phone call answering issue. Dare you happen to be doing anything while a call comes in

No. Install a new player to get a lighter, better player with integrated codecs than the bloated Windows Media Player and having to fight with multiple different 3rd party codecs that gets installed on Windows. You are actually installing more stuff (codecs) on your Windows than necessary by sticking to using c**p WMP. I can only assume you aren't that savvy with Windows and might be blaming Nokia for the wrong reasons.

Some of your other complaints also happen with most other phones. Like iPhone and most of Android phones etc. Some, I've never had issues myself.

kmplayer kills vlc btw.