Well Yes, But HAY. I think i figured it out. After Putting on my Thinking cap, i went to "Configure" for DivX and found out that i had it on "Home Theatre" setting, and i had to switch it to the "High Definition Setting"
Because the Frap'd Footage was 800 x 600 and home theatre only supports up to 720 x 480 i believe.
So now, i think i'm A oK