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I have a couple of question, if I were to back the files up on a dvd would they be able to play on a divx dvd player with out needing to be re-encoded?
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I don't quite understand what you want to do. If you want to take the info on the memory card and then copy it onto a DVD then yes, you will have to re-encode it for DivX. However, there are some DVD players on the market that are compatible with MPEG4 as well.
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Also I would like to know if I could play them from my computer with something like VLC player?
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Yes. Definately.
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I was wondering if this dvr is compatible with SDHC cards
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I am trying to get this info right now from our rep.
Hope that helps.