Chris,
I think you certainly have shown that you have the processing skills Now you have to maximize the quality of the data you can capture with the equipment you have.
Divx is going to hamper you getting more detail, as it is a lossy compression codec. Can your camera do any other formats? Another option thoug a bit of a workaround is to use the AV out of your camera and feed it through a video capture card or usb frame grabber or similar and capture to a avi on the PC uncompressed or as a sequence of bitmaps. My Canon A610 will generally output the live view signal to the AV Output, i think your camera can do this.
Another way is some cameras can pass live view over usb, you need to generally install a driver for this when you connect the camera. This like letting the camera become a Webcam. But this will usualy chew batteries up so you may want to go for rechargeable or even better AC Power adapter. The Optio E10 supports this webcam mode so possibly your Optio S7 may do the same. You could test this on XP with Windows Movie maker and see if it can live capture from your camera when connected. AVcapture would also work. As long as the Optio S7 is recognised by your system and there is WDM or VFW driver loaded for it.
But the best bet is to invest in a toucam SPC900 or if budget allows a DMK camera. Your camera may not be as sensitive but it should do a great job on the Moon given its brightness.
Still if you look at Mike he started with similar setup to you on a Dob and worked his way up and look what he is producing. So there is some thing to be said about mastering the processing and working with what you have.
Regards
Fahim