Unless you absolutely need to convert to DivX in real time, I'd highly suggest going with this:
http://www.circuitcity.com/detail.js...&catoid=-10266
It's the ADS Technologies USB 2.0 Instant DVD Video Editor. $169 shipped free from Circuit City (same price instore).
I personaly own it and would highly suggest it. It comes with alot of really good software, however, you will need to get a few other things to do the job properly. I'd highly suggest getting the following software in addition to what they provide you with:
DVD2AVI
Virtual Dub
TMPGEnc 2.5 Plus
Ulead DVD MovieFactory 3 Disc Creator
DVD2AVI and Virtual Dub are free, but you'll need to shell out $$$ for TMPGEnc 2.5 Plus. You don't ABSOLUTELY need Ulead DVD MovieFactory 3 Disc Creator, but I find that it's a little better than version 2 which comes with the ADS Tech hardware.
I'll just give a little summary of how I've been converting our old home videos to DVD:
1) Encode the VHS tape into MPEG2 using the CapWiz supplied with the ADS Tech hardware
2) Use Ulead VideoStudio 7 SE DVD to edit the video, then encode back into MPEG2
3) Use DVD2AVI to convert the MPEG2 file into a AVI (dv2) that TMPEGEnc can read, and also extract the audio.
4) Use TMPGEnc 2.5 Plus to chop off black lines and ugly sides to the video and take out any noise that might be present. I like to encode the audio and video together into a system file (PCM I believe) so I don't have to deal with importing audio seperate from video.
5) Use Ulead DVD MovieFactory 3 Disc Creator to create a menu (if necessary) and burn the movie. It will automatically reencode the video if you need to fit more than 120min on a DVD.
-Chris