Either Toast or iDVD can do this. You will need the divx codec for iDVD, Toast may have native support since it can create DivX DVDs. Either way, it's free from divx.com.
...or get something like the Philips DVP5140, and for about 60 bucks you'll have a very capable DVD player that will also play DVDs full of MP3s, JPEGs, DivX files and pretty much any other media you throw at it, and it can be made region-free to boot. Instead of burning a DVD with two hours of video from your DivX files, burn several of them to a DVD and you'll have access to nearly ten hours of video (or burn two hours of video to CD media instead).