You need your XBox360 to be modified with a mod-chip before you play games or movies.
Of course it can play any game of your own, and any movie (also DivX as you asked) as you wish after you get your XBox360 mod-chip installed!
It's a very mature technical now so it won't have problem if you get your XBox360 modified.
Also you can download any PAL or NTSC XBox360 game as you wish online now.
About the downloading and backup and copy games service: There are serveral sites providing such download services. They are very excellent on the contents, not only Complete big XBox360 games like Metroid, LOR, American Idols and Guitar Heroes etc. But also many movies, XBox360 tv shows, music and videos much more!!!
All you need is to join one of those sites to download so many resources. So you can download all those media as you wish!
And some sites can provide simple software hel
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Better? Well, how can I say that...
http://www.great-monitor.com/reviews/wii.htm
is the most pro. I had ever seen. Of course much better than a "free squidoo page". Judge yourself..
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Novice
