How convert standard MP2 (Not VOB) to divX?

[Umbra]

I want to edit my DV tapes then store on CD in DivX format.
My Pinacle studio7 is nice for editing, but converts standard DV tapes to either MP2 or AVI.
Pinnacle’s AVI quality is lousy, compared to the DivX copies I make from DVD and takes 4MB for 20 minutes. So, I ‘d like to save the result of my DV editing as MP2 and convert this to DivX.
Which tool can I use for this last step?
Thanks,

Umbra.

[theReal]

You can save a .d2v project of your mpeg2 file and proceed exactly like you would with vob files (that is: Gordianknot, avisynth, VDub).

However I'd rather use another program for the DV editing - one that doesn't convert to mpeg2 automatically. Then you can open the DV avi with avisynth and don't lose any quality before conversion.

[theReal]

by the way, can't you change the codec that Pinnacle uses for the avi files? "Avi" isn't a specific codec, it can be anything from uncompressed over DV to Divx - usually you can choose a codec for avi.