i haven't done much video editing, but if you just want to do simple things (like cutting), you could just edit the DivX directly with VirtualDub.
tutorials: http://wiki.onlinetvrecorder.com/index.php/Cut_Assistant_(en) or http://www.videohelp.com/oldguides/virtualdubedit
if you want to just convert DivX to MPEG you can use TMPGEnc
tutorial: http://www.dvd-guides.com/content/view/52/59/
Thing is I want to also use movies in MPEG format to insert scenes.. some movies are MPEG, some are DivX, some might be Avi... and want to use all the movies together.. so need them all in one format.. which I think ideally would be MPEG. Then, once I'm done with the editing, I'll be burning to DVD.
I'll check out that TMPGEnc. Thanks.