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1) Divx, Divx 6 or Divx avi, is the name of a video format, which can store standard [definition] video, and up to 5.1 audio, but on a much smaller file size than DVD-Video or MPG. Sizes can be as small as 700MB, allowing for easy storage on CDs, USB sticks or even internet sharing sites. This is achieved by using the superior Mpeg 4 compression scheme, compared to the old Mpeg 2 compression scheme [used] by DVD-Video or MPG.
Divx files have a .avi or .divx extension. Divx is probably the second most ubiquitous video format in existence (bested only by the DVD-Video format, you may already have a divx-capable DVD player and not knowing it), and the most common format for sharing movies on [the internet].
The downside is that making a good quality divx file takes some skills. It's also possible to put subtitles and menus inside divx files.

2) Divx HD, Divx 7 or MKV, is the name of a video format, which can store high [definition] video (same quality as Bluray), and up to 5.1 audio. Divx HD files are basically MKV files, but with tighter guidelines regarding audio compatibility. Divx HD (MKV) files are generally smaller than Bluray files, around 13GB. Even smaller file sizes can be achieved by throwing some quality out, thus allowing for an HD movie to fit in a dual layer DVD (7.9GB).
MKV is the most common format for sharing high definition movies on [the internet]. Bluray players with support for Divx HD/MKV have recently started to appear [on the market].

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