Brains-N-Brawn has figured out a way for Xbox 360 users to watch DivX videos on their Xbox 360. This is a good workaround for everyone that is sitting on the edge of their seats waiting for a mod solution to turn the Xbox 360 into a real multimedia powerhouse.
mceDivX360 actually works its magic by getting the Windows Media Encoder to do all of the work. The Windows Media Encoder will transcode the DivX files into the WMV format on the fly. The WMV is the format needed for the Xbox 360 to play the movie. This could have been much easier if Microsoft wasn’t so adamant about having users only use their files.
Guide For Getting DivX Videos On Your Xbox 360
News Source: eHomeUpgrade