How do convert DivX AVI to play in iTunes and especially on iPod?

I have a DivX AVI video file I would very much like to have on my iPod but have no clue what program might exist that would convert it to an iPod compatible format? I have Toast 7 if that helps..

I got my answer here, it's perfect!
http://www.versiontracker.com/dyn/moreinfo/macosx/28250

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