Which format to convert old DV tapes to?

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Years ago I recorded quite a few home video on to DV tapes and at the time made them available as DiVX format (not very good quality) for viewing off media center knowing fully well that I had to do something later on, either BluRay or similar.). And seeing as I dont see myself ever getting a BluRay recorder (or player for that matter) I want to convert the DV tapes to a good format (Xvid, mpg4, H.264, etc) and keep them on HDD's instead (+ backups).

The question is, what format should I convert them into, with quality as a priority but still keep disk space in mind. They will be viewed on TV from a media center (so need to get the interlacing right).
 
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