using any of the XviD or DivX formats would put you back where you are now - unable to burn so you need to pick one of the other ones:
the fact that you have a DivX file at the moment means it has already been compressed quite a bit so you don't really want to compress any further unless you want tiny file sizes and possibly poorer quality.
I would go with the lossless Huffyuv avi - just remains to be seen whether your DVD burning software will accept it.
DVD Shrink is good freeware DVD authoring software that I am pretty sure accepts DivX and XviD files - check it out
here