Actually, no. DivX rendering does work in Vegas and VideoFactory. The reason most users report problems with it is that the codec hides in the AVI section of codec selections, instead of the MPEG section where it belongs. Therefore, use this process to create a DivX template (this process can be done one of two ways, either through the "RENDER AS" function, or in the "PRE-RENDER VIDEO" template creator), assuming you already successfully installed the codec:

CREATING A PRE-RENDER VIDEO DIVX TEMPLATE
1. Start Vegas.
2. Open your project.
3. Click "TOOLS".
4. Click "PRE-RENDER VIDEO".
5. A dialogue box will appear. Click "CUSTOM".
6. Select the "VIDEO" tab below.
7. In the middle, where it says, "VIDEO FORMAT", select "DivX".
8. Select the "AUDIO" tab below.
9. Where it says, "AUDIO FORMAT", select "MPEG Layer-3".
10. Save you template with a cute name.
11. Click "OK".
12. Use the template.
13. Rejoice.

CREATING A DIVX TEMPLATE IN THE RENDER AS FUNCTION
1. Start Vegas.
2. Open your project.
3. Click "File", then "RENDER AS".
4. A dialogue box will appear. Where it says "SAVE AS TYPE", select "VIDEO FOR WINDOWS (*.avi)".
5. Now click "CUSTOM".
6. Go to step 6 above...

That should do it. Even though DivX uses MPEG-4 compression, it has the *.avi extension, which confuses most users when creating a template. If you follow the instructions above, you shouldn't have any problems. Keep in mind that the codec is very processor intensive since both the audio and the video are compressed via the MPEG codec. If you need to download the codec, I recommend the "DivX ;-) Alpha 311" version. It's served me pretty well. Get it at:

http://www.illclan.com/divx_311alpha.exe

After you install the program, make sure to run the setup afterward to get everything set up.

That's it! Have fun,
Nick LaMartina