I smell contempt from your reply. Bro, please don't be using sarcasm with me, alrite?
I know that we need to burn video cds in a particular way and the same goes for an audio cd or a DVD movie. But like i said, you can just drop mp3 files on a cd and it'll play on any mp3 compatible cd player. The same is true with DivX files on any DivX compatible DVD player. Notice the difference, i am relating mp3 to DivX - both computer encoding formats while you are thinking about video CD/DVDs, a format that was specifically made for consumer CD/DVD players.
To be specific, yes, one can just put DivX/XVid/mpeg4 avi files on a DVD and a DivX/XVid/mpeg4 compatible DVD player should be able to play it without any hiccups. One doesn't have to follow a specific burning/file/folder naming format. Hope that clears it up for ya.