What's wrong with DivX? It is not used in Linux, right. But you should understand DivX is nothing but an MPEG-4 compliant codec. Every recoding reduces the quality, we are talking about lossy codecs here.
In short, if you have a file encoded with DivX then you do not have a DivX file. You'll get a MPEG-4 file. You can use any other MPEG-4 codec to play it back, e.g. Xvid.