AVS Editor
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I read the excellent guide "DivX H.264 Encoder Alpha 1 & Tutorial" and I want to contribute by pointing out a very good editor for avs files called AvsP. It allows not only to edit scripts with powerful options like function completion, but it also has a preview that allows to view immediately changes to the script.
I think is better than using Notepad and VirtualDub.
It can be found at http://avisynth.org/qwerpoi/