Nope, VLC will play divx natively, along with just about any other media file (including music).
Has anyone tried to play a .mkv file on VLC on the PS3, because it seems that VLC can play .mkv, but currently I've only got a laptop since my desktop is in the process of being put together :P and whenever I view and .mkv file on my laptop it seems to use full cpu processing power and just get all choppy. The .mkv file is a high-def 720p video of the TV show 24 that I downloaded off of
www.eztvefnet.org if ay of you are familiar with that. My thoughts are that the .mkv requires quite a bit of proccessing power and I wasn't sure if it would be able to handle it.
Currently I don't have YDL on my PS3 yet because I need a usb keyboard (but I'm waiting till february to buy one so I can just buy the wireless Logitech PS3 keyboard wen it cocmes out, unless someone knows where I can pick up a real cheap usb keyboard or if someone knows if a ps/2 to usb adapter will work on a PS3).