This is correct - if you check your players manual, it says:

Using DivX disc

Disc : CD-R/-RW, DVD-RAM/±RW/±R, HDD, USB

Video File with following extensions can be played. : .avi, .divx, .AVI, .DIVX

DivX Video (Codec) Format : DivX 3.11 DivX 4.x DivX 5.x (without QPEL and GMC)

DivX Audio (Codec) Format : MP3, MPEG1 Audio Layer 2, LPCM, AC3, DTS

Supported subtitle file formats: .smi, .srt, .sub, .psb, .txt, .ass

Each folder can have up to 500 items including files and sub folders.

You cannot play back the disc that is larger than a 720 x 576 pixel resolution