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Or making hard-sub DVD-Rs from ripped DVDs -- technogirls did this for instance, as did a few other of the VHS subbers.
Digital or not, prior to "ms-mpeg4 v2", or "ms-mpeg4 v3" an identical codec to 'DivX :) 3.1a'), the main formats were .rm and .mpg (MPEG-1). A popular source of .rm's was lunaarts.com, but primarily, these were video captures or digisubs re-encoded from other formats.
As far as digital, I don't remember any groups intentionally making .rm's. Only .avi's and .mpg's. Sometimes distributors would re-encode those .avi's or .mpg's to .rm to cut filesize, though.
And pre-nandub, many groups (#animempeg for instance) were still releasing a lot of .mpg because it was easier to get good and constistent quality for an encode. DivX had a high-motion codec, VBR quantization 5 or less (you could set the bitrate cap) or a low-motion codec which ended up being pretty close to CBR. Once nandub became usable, I don't remember any group releasing in .mpg anymore.
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