divx=avi=xvid etc.
A dvd movie amounts to about 4.7 gig of data.
A divx(avi) movie amounts to about 780mb(aprox) of data.
The divx function on your player is a goRABend(in my opinion)
There are utilities out there that can convert dvd movies to xvid.
You can store upto 7 xvid movies on one dvd.
Your player will show a menu with all the movies you have on each disc and you just choose which one you want to watch.