Why do you keep repeating that newly released files with MPEG-4 video track don't work because of BSPlayer? I have recently played a few XVID and DIVX files on my old Win98 machine using BSPlayer v1.36 + ffdshow 2004.
Have you installed ffdshow? What exactly happens if you try to open a video file?
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it works OK for some avi and divx files
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What is common among the working files? Have you enabled "libavcodec" for all required MPEG-4 formats (XVID, DIVX, DIV3, DX50…) in the configuration window of ffdshow?