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Go to Gary's thread, one of the most informative on MyBB!!I am afraid I do not know of any free software that converts divx to dvd, but would the dvd player not be able to handle a data disc that contains divx etc. movies?
It might be more worthwhile just to purchase a cheap media player or another DVD player with a USB port. Recoding divx files well could take quite a bit of effort.
http://www.ikonicit.co.za/electronics-and-multimedia/multimedia-players/isonic-mp109.html
This is even cheaper if you can get hold of an old 2.5" IDE drive ...
http://www.bidorbuy.co.za/item/4339...layer_Enclosure_2_5_inch_USB_2_0_InStock.html