I figured out how to watch DivX/Xvid movies on my iPhone, off the WD TV Live hub!
You will need to be jailbroken, and you’ll need these 2 apps:
Safari Download Manager ($5 in the Cydia Store)
VLC media player (free on Cydia)
1) Make sure you are connected to your home WiFi network
2) Navigate to your twonky media server in mobile Safari:
eg. http://192.168.1.75:9000 (edit the IP address accordingly)
3) When you click on a movie, Safari download manager will prompt you with 4 choices
[Download] , [Download To…] , [View] , [Cancel]. Select “Download To…”
4) Click on the “< Media ]” button to move up one folder from the default. This is the /var/mobile/Media folder where VLC looks for files. Click “Save”.
5) Wait for the file to finish downloading, and then open the VLC player. You divx movie will appear in the VLC app.