That is why you are goign to use DVD authoring software to create DVD menus and chapters to any souce video file youe want.. be it divX.
With Ulead DVD MovieFactory 5 or DVD Workshop 2, you can create DVD with motion menu, motion background. With DVD WS2, you can create subtitle, multiple audio tracks. With DVD MF5, you can create 16:9 menu, menu transition and many more...