Here's a very simple way to make your Microsoft Zune Player to play Divx Movies. When I said simple - I really mean it.
Using the following registry hack makes it possible to add and sync Divx movies to your Zune player successfully. Once this is done the Zune automatically converts them to the native format which makes it possible to view them just as any other video format that you have stored on your Zune player.
So, here's the trick. Copy/paste the following lines[in green below] into notepad, save the file with a .reg extension. (Eg. Zune.reg)
Windows Registry Editor Version 5.00
Double-click the newly created file(Zune.reg) and the information will be added to your registry. You will then need to restart your computer before you can drag and drop divx movies to your Zune player.
Another simple method would be to rename the divx files to .wmv and add them to your Zune player. Once they appear in the library you would rename them back to .avi and sync it afterwards which should automatically convert the file and make it playable in the Zune player.