I know that the website looks like it fell out of 1997, but SUPER@ can transcode between a TON of formats including Divx AVI's and WMV and is freeware.
It also contains an expansive variety of available internal codecs. It works as a multi-purpose media player as well but it's err.. better.. at just transcoding.
Use AviSynth to frameserve the DivX file to Windows Movie Maker to create a .WMV file.
AviSynth can be a little intimidating because there's no GUI. However, it's not as big of a deal as it seems especially since all you need to do is frameserve a DivX file to Windows Movie Maker. (Or, any other program the transcodes into another format.) If you want to try this route, read the available guides and post your questions. I'll help you out...
If you have access to a Mac, you can use iMovie to do so. You just need to install the DivX codec for quicktime as well as Flip for Mac (WMV codec for quicktime). Both of those are free as well.
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