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Yes, I've confirmed that Final Cut DOES have issues with the imported Xvid files and the b-frames. In other words, if you need to do exacting cutting, you won't be able to if your AVI has B-frames. Also, it appears that AC3 in AVI doesn't import properly, which means you might have to extract the audio and then add it to the imported video AVI.
But really the answers to your question are now YES you can edit Xvid/Divx video in Final Cut Pro, though it will be a bit quirky and it all depends on the kind of encoding of your source AVI.
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