Not answering your real question, but a suggestion nevertheless. I got a Philips DVD737 DVD player. It plays about any Divx, Xvid I throw at it, (as well as MP3's and DVD's of course) and image quality is far better than the TV out of my computer. it has a remote, supports .srt or .sub subtitleing and costs like $150. It also looks a lot better with the rest of my home cinema, its noiseless, doesnt require a long boot up process, nor a wireless mouse with insufficient range, etc.
The only downsides are it doesnt have a harddisk or ethernet, so you have to burn your avi's on a DVD, but since you can cramp 4-8 movies on a single DVD, its not that big an issue. Another one is that subtitles are ugly: small, yellow non antialiased font. I'm hoping a new firmware upgrade will improve this.
If its only for playing movies, I'd really consider a dedicated AVI player.
= The views stated herein are my personal views, and not necessarily the views of my wife. =