There are guides on
www.doom9.org. I would definitely recommend checking out this site. It's the best site out there for anything to do DVDs, divx, etc. Check out the Guides section for what you want to do.
Also, if you're willing to invest a bit of money there are DVD players out there that will play divx files without having to convert them (kiss is one brand I know for sure does it, but there are others as well).