Anyone who thinks that DivX is lossless is a moron.
DivX is a perceptual video codec. It is similar to mp3, which is a perceptual audio codec.
A high-enough bitrate mp3 will APPEAR to be identical to the original source material to 99.9% of all listeners. For mp3, the magic bitrate seems to be 192kbps CBR, or 256kbps CBR if you're an audiophile. Personally, I use 32kbps to 256kbps VBR. I get a perceptual result that is identical to 256kbps mp3's, but the average filesize is equivalent to a 160kbps mp3.
All this mp3 background is to help the reader to understand how perceptual codecs work.
Similar to mp3, a high-enough bitrate DivX will APPEAR to be identical to the original source material to 99.9% of all viewers. This is especially so with DivX v4.12 which calculates each frame separately as a slow-motion or high-motion frame. The magic bitrate for DivX'es seem to be ~ 700Mb for a 1.5 hour movie. (You do the math.) With longer movies, some artifacts may appear. As 800Mb and 900Mb CDR's become more popular, and as burners that support XL CDR's become more popular, this will become a non-issue.
To sum up: DivX is not lossless from an information theoretical point of view, but it will look that way from a perceptual point of view.