A friend of mine picked up one of these from Walmart ($70). He confirms that it plays both DivX and Xvid files from CD-R, but seems to prefer 640x480 size for some reason. It's sometimes jittery with very high bit rate files, but has no problems with low or medium bit rates. It also plays normal disc formats (CD, DVD, etc.)
More info can be found at http://www.videohelp.com (formerly, www.dvdrhelp.com).

