I'm not sure about VOB files, but for other standard video types (mpeg1/2) you can use TMPGEnc. With Divx installed, in TMPGEnc, go to File, Output to File, AVI file, then under Video, hit the settings button. There you should be able to select Divx, and customize the Divx output settings.
_________________________
-Michael

#040103696 on a shelf
Mk2a - 90 GB - Red - Illuminated buttons