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I don't think there is much difference, OK divx5 blurs the picture slightly more and xvid will produce slightly more macroblocks at low bitrates.
If you like to experiment go with xvid, it offers some very interresting features, like specifying your own quantization matrix (ok I think this is broken in the newest buid).
Using xvid also means that you often can get daily updates for the codec, but these updates are usually completly untested (you get to do alpha testing).
If you are interrested in this stuff you should follow the xvid forum at www.doom9.org.
XVID is still in development, but as it is mentioned at doom9, it appears very promising. Generally, divx 5.0 is an improvement over the previous divx 4.x codecs.
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