DivX is based on the MPEG-4 compression format. MPEG-4 is a new standard of video compression that is both high quality and low bitrate. They are usually only a fraction (around 15%) of the size of a standard DVD, even at 640x480 resolutions, making them the best home video format thus far. They only take half the time to encode, and yet at the same time is smaller in size than MPEG-1 - due to their incredible compression technology - some have even called MPEG-4 the "MP3 of the video world". Quality ranges from net-streaming quality to near DVD due to the flexibility of the format.
For a DVD to DivX conversion guide, please refer to this page.
For more information on how to convert, encode or playback DivX content, please refer to our this page.