haha. the 360 is does not have an operating system that can do that. lol. but theres no need to have DivX because with the Optional Media Update, most commom codecs have become playable. download it off the marketplace here.
http://marketplace.xbox.com/en-US/games/media/66acd000-77fe-1000-9115-d802fffe07df/
this might make your video work
http://www.youtube.com/watch?v=zRx0uQ9GrL4
free ms points and LIVE