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Is there a way to encode a DivX file into an iPhone-compatible video file while the DivX is downloading/streaming?

Further, is it possible to re-stream the resulting iPhone-compatible video to the iPhone with a minimal (say, 2 minute or so) delay?

I've seen other questions about encoding iPhone-compatible videos but they don't quite address the streaming video source and potential of streaming output that I'm interested in.

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Jonathan, your original question read like converting on the fly is a "nice-to-have", not required, feature, and the while-downloading requirement was hard to spot. i've edited the post so both of these points are more obvious. hopefully the edit doesn't misrepresent your intentions. –  quack quixote Apr 17 '10 at 21:31

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Buzz player app works in this scenario exactly. (however at the time of asking it was not around) The folder the video is in must be shared on the network

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