5b916d7a_d_DIVX_supported___WMPoweruser__Supported_Scenarios
[Decoder Support] MPEG-4 Part 2 – Simple Profile This codec is unsupported in Windows Phone Emulator. [Container] 3GP, 3G2, MP4, M4V [Possible Audio Combinations] AAC-LC [Max Capabilities] Up to 2 Mbps avg video bit rate Up to 27 Mbps peak video bit rate Up to 320 Kbps Constant or variable bit rate Up to 48 kHz 1 or 2 channels 800 x 600 pixels (1280 x 720 pixels for HD capture devices) at 30 fps [Supported Scenarios] 
Receiving files as attachments in email and MMS messages Syncing content from the Zune client to the device MediaLibrary (3GP and 3G2 are unsupported) Playing or streaming media with the MediaElement API Playing media in the device Media Player Streaming media in Internet Explorer Mobile Capturing video using the device camera (as an MP4 file). If the video resolution is 720p, it will be encoded as this codec type
Updates codec support list for Windows Phone 7 released, XVID and DIVX supported - WMPoweruser
Supported Scenarios