So it was codec issue after all...
Support generic MPEG makes DivX play everything it can play, including XviD encoded files, as well as some other mpegs.
The conclusion is simple: some other codec is messed up.
The reason why DivXPlayer was able to play things well, is because this player is made by DivX developers and they set it to use DivX to play everyting.
Glad I could help.
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