OK, I tried a couple things. I do already have the full paid and registered version of DivX Pro. I uninstalled it and deleted all left over divx directories then reinstalled it. After reinstallation, the registration says it is registered.
I updated PD9 to 9.0.0.2330 which was released in the last couple days.
I rebooted the computer (Windows 7 Ultimate).
I started PD9, it did update sucessfully as it does show the correct version.
I opened the project I'm testing with, a m2ts video, no edits, just trying a 'simple' recoding.
Selected the .AVI file format with the Windows-AVI Profile Type.
All three selectable profiles only allow "No compressor" for the "Compression codec"; totally flippin' useless!
Ideas please...