Short answer is yes. If you have the codecs on your system to view DivX encoded content then you can edit and/or render DivX encoded AVIs in Premiere.
A word of caution, though: Since most of the DivX codecs are hacks they're a lot less reliable than established codecs. I found that Premiere 6 tended to crash a lot whenever I tried editing DivX encoded files. Typically what I'd do to prevent this is drag the DivX file to the timeline and render it out as DV. The resulting file has the same content but it's much larger and Premiere will work with it without crashing (as often).
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