DIVX itself should not have had anything to do with the validation issue. Though uninstalling any type of codec software carries a chance of it messing up an install unfortuantely :/
For Windows 7 using "Sharky's" codec pack or installing the VLC player are the safest bets for stable video of almost any kind imaginable on Windows 7.
For now doing a Repair Install from the WIndows 7 install disk may be the best bet for getting the computer back on line. It'll reinstall windows and al the
drivers. Existing programs and user data will remain.