Amp2, MooVId, Softcinema and Frogger can play DivX movies. If you want the best performance I suggest use the Softcinema powerup version _without_ ppclibemu.
Amp and Frogger is better in knowing much more formats (mpg, etc.), and only frogger has a Pegasos native version.
I have to mention MooviD, as it's pretty stable, unlike for example Frogger. Not the fastest, but a very decent player. The skip routines were made using a 604e, so on anything else it may not be that perfect.