you have 2 options: progressively copy your divx collection into Core (may take a while ...), or use a "dirty trick".
The "dirty trick" is:
- write a very simple script that mounts your cdrom, launches with xine the divx file in it and after xine finishes playback unmounts your cdrom
- store your script somewhere in a place where your MD can easily access
- add in the computing section an application that calls your script.
You can control xine with the keyboard that appears on Orbiter, keeping in mid that you are using the genuine xine so all regular key combination ARE working.
This trick used to work just fine in Pluto, I never tried it in LMCE but I think there shouldn't be reasons that may prevent it to work now.
Of course if you have DVDs (not cdroms) with multiple divx file you have to enhance this "dirty trick" to a "decent workaround" (write something that reads all divx title on DVD, displays them on screen and allow you to choose which one to play)
If you're skilled enough with bash I think you may get something.
If you decide to do that, keep us posted