VSO Software Forum

Divx isn't specifically listed but Xvid is and hopefully that will do your job. Once you have loaded your file to convert, pick generic avi, then on the next screen use the drop down box/icon to select your codec, in this case Xvid and whatever resolution option you want.
Hope that helps.
BTW I ...

I think you need to decrypt the DVD first. I use DVDFAB Passkey which is free to write an unprotected ISO image on to my hardrive and load that into DVD Converter. The version .21 seems to work well with anything I have tried so far.

Just found the forum. I was surprised to see a beta version that solved the issues I was having and that I had emailed you about.

I was just about to bin the software, because of the issues, but glad I persisted and the forum link caught my eye.
Could I suggest that you place this version on your ...