I just bought the Eye TV, and am waiting for my upgrade code to 2.0 to try it out, so I don't know if that's even an option. I'll report back once I have learned the app.
Tivo records at Medium quality, which I've read on a message board is 352x480, 2600 kbps, but I have no way to confirm this.
I did try converting a Tivo file with ffmpeg to an AVI Divx default setting (bit rate: 1137). Not sure how to then burn it to a DivX disc in Toast... Toast seems to want to reencode it. Any thoughts on this?