Your best option would be to spend a little cash for a DivX compatible DVD player, which will play the files, directly from a disc or sometimes a USB source, straight to your tv. I use it, and never have to convert.
Philips makes some very good ones, particularly the DVP 3140 which is quite inexpensive.
Converting DivX to DVD-MPEG-2 is not always the best idea. XviD gives better results. But, again, I can't stress enough how a DivX/XviD player will sort your troubles.