Just for the record, DivX is AVI. Well, the codec encodes an AVI file. WMV is it's own codec as well, and it encodes in AVI too.
WMV stinks, that is all you need know. If the only choices you have are between DivX AVI and WMV, go with DivX. WMV does all kinds of crappy things with videos like messing with picture quality, and it does god-awful things to audio that's run through it. It hurts my ears

DivX can be just as bad sometimes, but not if it's encoded correctly. At least DivX gives the opportunity for the person encoding it to put in settings that will produce a good file. WMV really only offers crap, crappier, and crappiest (if you're working in WMM).