There is no problem: you only have to use a Divx compatible Dvd player.
The quality depends from the compression level of the Divx movie (more than, obviously, the quality of the original recording): a good Divx movie (for 1,5-2 hours playback) has to be at least 800 MB if the sound is stereo and monolingual or 1,3-1,5 GB if is multichannel AC3 encoded. Smaller video files give a bad quality picture (pixel effects, overall in fast action scenes) on every type of screens (CRT, LCD, etc.).