If you want to watch Divx or other videos encoded with proprietary codecs, you need to install win32/64 codec pack!
Add this line to /etc/apt/source.list
sudo wget http://www.medibuntu.org/sources.list.d/gutsy.list -O /etc/apt/sources.list.d/medibuntu.list
and then run this
wget -q http://packages.medibuntu.org/medibuntu-key.gpg -O- | sudo apt-key add - && sudo apt-get update
so you can install now!
apt-get install w32-codecs non-free-codecs libxine1-ffmpeg
(or w64-codecs)
Now you can watch your Videos with Kaffeine!
