Ok, after reading your post I downloaded the software and tried it.
Sound played OK but my TV video signal was just wonky lines....
But I kept researching the problem.
Eventually I found another app which uses the combination of media player, divx, hollywood plus and Divxplus to work.
Its called HHPlus.
Its a much more developed application, and has playlists, etc.
Here are the URLS:
http://www.hplus.hu/hhplus/download_en.php
http://www.icomp.hu/hirek/20020103divx.html
Obviously this is a work in progress but the author is working on another version.
Currently watching a very popular movie on it.
Sometimes it gets into a mess and I have to open DVD Station and play a regular MPEG on the TV to reset it, then open the application again and then try again.
But its certainly acceptable and seems to work not too bad. Its better than watching on the computer monitor, even if the monitor is big. The TV still wins!
Remember that its still just using the Hollywood plus to output to the TV put not actually using its hardware decoding properties so playback is not as smooth as a DVD with the DVD Station software.
For hardware accelerated DivX you need the RealMagic XCard which is the upgrade from the Hollywood Plus.
Also please note that, as Thomas said, the software does not work in Windows XP, only 2000 and 98 and ME.