I use DIVX movies through either my PS3 or Popcorn A100 and to be honest, on my 42" Panasonic Plasma you CAN notice that its a compressed file.
700MB DIVX movies of an average of 2hrs you can see blocky noise and more noticable the darker the scene....
1.4GB DIVX is much better, then then when Tesco and most DVD retailers now chruning out a DVD for less then a fiver for some top titles, when these are played in an upscale DVD player, I mean honestly its almost Blu Ray... Well not quite but is really good, I have a PS3 and only a handful of Blu Ray, but hundreds of DVD's most I paid less then £7, many at £3 in supermarkets...
DIVX is ok but nothing beats a real DVD or blu ray..... I also think sometimes DIVX sound isn't as good, many are recoded to ACC and downgraded to 2.1, some are multi channel, and blu ray in mkv are huge files, and I can hardly stream then across wireless.....
For the sake of a fiver, I just buy the DVD...!! lol