When Dr. DivX gives birth to a fledgling DivX video file, the newborn is gently deposited into the directory specified under Encode all files to. This is a setting you probably change. By default the target directory is well hidden. You may prefer to specify a custom location such as your DivX movie directory or your My Videos directory. You can also choose the Input Directory option if you want to keep the newborns with their parents.
Dr. DivX uses the Encode all files to Custom Location directory to store all newly encoded files. If the Input Directory option is selected, Dr. DivX will store each encoded file in the same directory as the input file that was used to create the DivX encoded file.