I used to encode with DivX but when comparing it to Xvid codec (Koepis build, available from various sites live divx station) found that it performs better both on my pc and divx / xvid standalone system.
For live capture from video or dvd conversion I use xvid set at 100% quality so I can edit it, filter out logo`s etcetera, but it does work well at lower bitrates.
Another very good codec is the 3ivx one from 3ivx.com but I found that it`s encoder caused divx and xvid editing problems in virtualdub and tmpgenc so had to remove that to correct the problem.
Hope this helps a bit